Employee Retention Credit for Commercial Contractors

What is Employee Retention Credit?

The Employee Retention Credit (ERC), a refundable payroll tax credit, provides cashflow relief to eligible employers for up to $5,000 per employee for 2020 and up to $21,000 per employee for 2021.

Why Commercial Contractors?

Contractors often qualify based on various job site restrictions applied to customer work sides. Apex analyzes the COVID regulations and will work to quantify the impact on business operations and substatiate the credit qualification.

Who Qualifies?

• Businesses that experienced a decline in quarterly gross receipts of 50% in 2020 or 20% in Q1, Q2, and/or Q3 in 2021 compared to the same quarters in 2018, or

• Businesses whose operations were fully or partically suspended or who suffered a productivity loss of more than 10% due to COVID restrictions.

What Makes a 10% Impact?

• Site screening

• Site equipment disinfection

• Handwashing / personal cleaning

• COVID reporting / testing

• Time lost to social distancing

• Elevator or lift issues / waiting

Sample Tax Credit by Number of Employees Client

Client A

• Number of Employees: 10

• Total Maximum ERC Amount: $260,000

Client B

• Number of Employees: 20

• Total Maximum ERC Amount: $520,000

Client C

• Number of Employees: 100

• Total Maximum ERC Amount: $2,600,000

Client D

• Number of Employees: 450

• Total Maximum ERC Amount: $9,450,000

Watch a webinar on ERC presented by SMACNA SoCal here: youtube.com/watch?v=bPr7WMouLiU and contact the office with any further questions. ▪