If you’re a small firm and you were able to effectively keep lawyers and other employees on your payroll during the COVID crisis, that is great news. What’s even better is that you might be eligible for the Employee Retention Credit (ERC).
The ERC was established during Covid to help relieve some of the pressures of business owners such as you and your law firm, as an incentive to continue paying your employees. Essentially, the ERC provides a refundable employment tax credit where eligible employers can receive a credit of $5,000 per employee per quarter in 2020, and $7,000 per employee per quarter in 2021. By filing for the credit, employers such as you can recoup up to $26,000 per employee.
While the program effectively ended in 2021, firms still have an opportunity to claim ERC for up to three years retrospectively. Of course, as with all things, the devil is in the details and there are a number of criteria to determine whether you as an employer qualifies.
Not sure whether you qualify for the ERC? Give us a call at 1-855-945-0200 or send an email to info@ilawinc.com.