Business owners may qualify for a tax credit for hiring a worker or retaining a worker in their payroll during the coronavirus pandemic.

This credit applies to all new hires or rehires between April 15, 2020 and September 30, 2020. In order to claim a credit, companies need to have a minimum of 20 employees and have been employing at least 75 workers for at least 12 weeks prior to the application date.

This means that the employee must have worked for a minimum of 40 hours a week for at least 12 weeks in order to qualify. In addition, it’s important that the employee has been working at the company for at least four weeks, otherwise the business will lose the ERC credit. If the business had fewer than 100 employees during the entire year, there is no maximum percentage.

The amount of tax credit is based on the number of eligible employees. Companies can claim a maximum of $10,000 per qualifying employee. The amount of credit can be carried over into the next taxable year. A business cannot claim the credit multiple times.

If your company was impacted by the pandemic and you have retained employees, you can apply for a claim by completing the ERC Application form. This will be processed electronically and take about one to two weeks. Once approved, you will receive a reimbursement check directly from the IRS.