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Employee Retention Credit (ERC)

Businesses Impacted by COVID-19 may Qualify to Receive Up to $26,000 per Employee

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A Guide to ERC Eligibility


The process is easy for all businesses, and any business that has employees can qualify. Claim ERC today.

1. What is ERC?

The Employee Retention Credit (ERC) is a refundable payroll tax credit designed to help employers offset the costs of keeping employees on their payroll during the COVID-19 pandemic.

Employee Retention Credit (ERC) – Overview & FAQs

The ERC is a payroll tax credit for employers, up to a maximum of $5,000 per employee in 2020, and $21,000 per employee in 2021. Eligible employers can claim the ERC for wages paid to any employee who works for the employer for any period of time during the eligible period, regardless of how much or how little they work.

The credit is available to employers with fewer than 500 full time employees, including nonprofits. The ERC is designed to incentivize employers to keep employees on their payroll during the pandemic and help them cover the costs associated with doing so.

Established by the CARES Act and altered by additional acts passed by Congress in 2020 and 2021, ERC is available retroactively to both small and mid-sized businesses. It is based on qualified wages and healthcare paid to employees.

  • Credits can be up to $26,000 per employee
  • ERC is available for 2020 and the first 3 quarters of 2021
  • Businesses qualify by meeting 1 of 3 factors
  • Businesses that received PPP can also qualify

2. ERC Eligibility

Many employers qualify for ERC. This includes universities, colleges, 501(c) organizations, and hospitals. 

Qualifying organizations can qualify for one of the following reasons:

  • Partial or full suspension of operations during the COVID-19 pandemic due to governmental orders affecting travel, commerce, or group meetings.
  • A significant decline in gross receipts during the COVID-19 pandemic.
  • Designation as a Recovery Startup Business (those who started a business after February 15, 2020 and who meet other gross receipt conditions). These businesses could be eligible for up to $50,000 per quarter in the third and fourth quarters of 2021.

Restricted Operations

The full or partial suspension of operations due to government orders that limited commerce, travel or group meetings due to Covid-19. 

Decrease in Income

Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the same calendar quarter in 2019. 

Period of Eligibility

A business can be eligible for one quarter and not another or a date range within a quarter and not the entire quarter.

Previous PPP Benefit

Even if you received a Paycheck Protection Program (PPP) loan, you can qualify for ERC. PPP dollars used toward employee wages will not be used to calculate ERC. 

Business Age

You could be considered a Recovery Startup Business if you started a business after February 15, 2020, and be eligible for a $50,000 per quarter ERC for the third and fourth quarters of 2021.

Important Information, Blogs and FAQ


Employee Retention Credit (ERC) Frequently Asked Questions

Discover the employee retention credit questions (ERC credit requirements) and if you can still file for ERC in 2022. All ERC questions on one page.


Essential Employee Retention Credit (ERC) Links

Please review the links below for useful information related to Employee Retention Credits for your business. These links are here to help you become more knowledgeable about ERC eligibility. 

Employee Retention Credit (ERC) – Overview & FAQs

Employee Retention Credit (ERC) – Overview & FAQs

CAVU HCM is here to provide you with the most up-to-date information and resources to help your business benefit from the ERC program. 

What Constitutes a Partial Suspension of Business Operations for ERC?

What Constitutes a Partial Suspension of Business Operations for ERC?

We can help you understand the meanings of “partial suspension” and “nominal impact,” and decide whether you are eligible for a retroactive ERC claim.

How to Prepare Your Business for ERTC Funds

How to Prepare Your Business for ERTC Funds

Our experts can guide you through ERC eligibility requirements, which forms are needed to file, and how to begin calculating qualified wages to file a claim.


How to Claim Employee Retention Credit (ERC) Retroactively?

Here are your answers for how to claim employee retention credit retroactively, this year. Businesses have up to 3 years from the original tax date.

FAQ on the Tax Implications of the Employee Retention Credit (ERC)

FAQ on the Tax Implications of the Employee Retention Credit (ERC)

The Employee Retention Credit (ERC) has been a valuable resource for eligible employers who have kept their employees during the COVID-19 pandemic. However, questions still arise regarding the tax implications.

Supply Chain Disruptions and Employee Retention Tax Credits

Supply Chain Disruptions and Employee Retention Tax Credits

We’ll outline the necessary standards of proof for businesses wishing to verify their ERC eligibility based on supply chain disruption. We’ll also offer examples of domestic or foreign government orders that qualify as eligible disruptions.

Learn more about the Employee Retention Credit

Take the time to let CAVU's ERC experts provide you a no obligation, one-on-one overview of how the credit works. 


CAVU HCM is a national boutique payroll and HR technology and services firm. C-A-V-U, the acronym, stands for Ceiling and Visibility Unlimited, a phrase often used to describe desirable flying conditions. This also clearly describes our mission; Eliminate barriers, boundaries and limits for our valued clients and their workforces by providing best-in-class technology and a unique personal experience online and offline. We are a great fit for companies wanting to do business with people.

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