The negative fallouts of the COVID-19 pandemic continue to impact businesses worldwide. At the pandemic’s peak, many companies struggled to keep their doors open and their employees on the payroll. To help alleviate some of the financial burdens faced by businesses, big and small, the United States government introduced two programs: the Paycheck Protection Program (PPP) and the Employee Retention Credit (ERC). But which one is right for your business?
The PPP is a loan program designed to help businesses keep their employees on the payroll and pay their bills during the pandemic. The loans are partially forgivable if companies use them for certain expenses, such as payroll, rent, and utilities. The PPP is administered by the Small Business Administration (SBA) and is available to businesses of all sizes.
On the other hand, the ERC is a refundable credit available to businesses that the pandemic has financially impacted. To be eligible for the credit, a company must have experienced a partial or total suspension of operations due to a government order related to COVID-19 or a significant decline in gross receipts. If a business meets these criteria, it can claim the credit on its quarterly employment tax returns. The ERC is calculated based on the qualified wages paid to employees, and the credit is equal to 50% of those wages, up to a maximum of $5,000 per employee.
So, which program is right for your business? It depends on your specific circumstances. If you are struggling to keep your employees on the payroll and need financial assistance to pay your bills, the PPP may be the better option. If you have been able to maintain your payroll but are experiencing a decline in revenue, the ERC may be a more suitable choice.
Oppuous’ Cost Recovery Partners can help businesses like yours navigate the process of claiming either the PPP or the ERC and ensure that they receive the maximum benefit. Our team of experts can help businesses determine their eligibility, calculate the credit or loan, and file the necessary documentation.
If you are a business owner impacted by the pandemic and struggling to keep your doors open, the PPP or ERC may provide some much-needed relief. To learn more about how we can help you take advantage of these valuable programs, contact Oppuous’ Cost Recovery Partner today – https://bit.ly/3CqIMp3.
