Overview of the COVID ERC

The Employee Retention Credit is a temporary program originally established under The Coronavirus Aid Relief and Economic Stimulus Security Act, known as the CARES Act on March 27, 2020 in response to the economic fallout caused by the COVID-19 pandemic in the United States. Due to the prolonged impact the pandemic continues to have on the economy, The Consolidated Appropriations Act of 2021, enacted December 27, 2020 extended and modified the ERC program, so that qualified employers can apply to claim the benefit in 2021 in addition to 2020.

General ERC Qualifications

Non-Essential Businesses

The ERC program applies mostly to businesses considered non-essential after March 13, 2020.

Suspended Due to Mandates

Either, business must have experienced a temporary or permanent suspension due to government mandate.

Significant Decline in Gross Receipts

Or, business must have had a significant year-over-year decline of gross receipts during each quarter*

Kept Employees on Payroll

These businesses must have kept employees on payroll and/or on company-sponsored healthcare benefits.

Essential businesses may qualify for ERC in instances where the business operation was severely disrupted as a result of the pandemic.

Sample of the Savings Produced by Walton

$1,000,000+

Fortune 500 Manufacturer

$300,000+

Regional Staffing Company

$800,000+

Janitorial Services Company

$600,000+

Regional Restaurant Chain

$2,000,000+

Automobile Dealership

$1,000,000+

Fortune 500 Manufacturer

$300,000+

Regional Staffing Company

$800,000+

Janitorial Services Company

$600,000+

Regional Restaurant Chain

$2,000,000+

Automobile Dealership

Year-over-Year ERC Benefit Details

Table showing 2020 and 2021 ERC requirements
Scroll to top