What Is the Maximum Amount of the ERC That a Business Can Claim?

The Employee Retention Tax Credit (ERC/ERTC) was established to provide a refundable employment tax credit to assist businesses with the cost of keeping staff employed during the height of the COVID-19 pandemic. Although the credit was available for certain 2020 and 2021 quarters, businesses can retroactively claim the credit by filing adjusted employment tax returns. But what is the maximum amount a business can claim? 

Your business could be leaving a lot of money on the table by not filing for the ERC if you are eligible to do so. ERC professionals like the team at Dayes Law Firm can help you determine eligibility and help you with your ERC application so you can earn the funds your business is entitled to. 

Maximum Amount of ERC Funds

Employers can claim different amounts per employee depending on the tax quarter in question. 

For instance, the maximum amount of qualified wages taken into account for each employee for all calendar quarters in 2020 is $10,000, and the maximum credit for an employer who qualifies for the ERC is 50 percent of the first $10,000 in qualified wages – up to $5,000 per employee, according to Experian. 

2021 differs slightly. For that calendar year, eligible employers can claim a credit of up to 70 percent of qualified wages paid to employees after December 31, 2020, and before October 1, 2021. 

For 2021, the credit is equal to 70 percent of the first $10,000 in qualified wages per quarter, or up to $7,000 per employee per quarter. Ultimately, an employer who qualifies for the ERC has the potential to get a maximum credit of $7,000 per quarter per employee, for an astonishing total of $21,000 for 2021.

That means the total maximum amount of the ERC a business can claim per employee is $26,000 – $5,000 per employee in 2020 and $21,000 per employee in 2021.

How Dayes Law Firm Can Help

At Dayes Law Firm, we can work out whether or not your business is eligible for the ERC tax credit and file the appropriate amended quarterly payroll tax returns on your behalf to claim your funds. 

We are a team of experienced tax attorneys and have already helped many business owners apply for the refunds they’re entitled to through this program. Dayes Law Firm has a clear record of success when it comes to handling ERC applications for businesses, and we would be happy to work with you to see if we can help your business, too.

Please don’t hesitate to contact us for a free consultation regarding any of your Employee Retention Tax Credit questions today! You are under no obligation to work with us after the initial evaluation, but we think we can prove why we are the right choice to help you and your business with the ERC.

Call today for your free consultation, or fill out the form on this page to learn more!