Your Tax Incentive Experts

Omega is your government tax incentive expert. We strive to help our clients achieve the best possible options for their business.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law in late March, provides economic relief to businesses and individuals. The stimulus package, which made $370 billion in funding available to small companies, contains a provision allowing certain employers to claim a tax credit for retaining employees during the crisis.

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Employee Retention Credit (ERC)

The employee retention credit (ERC) – allows eligible employers to take a payroll tax credit for retaining employees during this crisis. Eligible employers can claim a credit against 50 percent of wages paid per quarter, up to $10,000 of qualified wages per employee annually paid between March 13, 2020 and December 31, 2020. The maximum credit is $5,000 per employee for 2020.

The ERC was extended from January 1, 2021, to September 30, 2021, through the COVID-19 Relief Package, signed into law in December. Eligible employers can claim a credit against 70% of wages paid per quarter, up to $10,000 of qualified wages per employee. The maximum credit allowable is $21,000 per employee for 2021.

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How Businesses Qualify?

Qualification for the ERC is through either one of two factors:

First full or partial suspension of business operations as a result of a government order, or Second the business suffered a significant decline in revenue compared to same quarter in 2019. For 2020, the decline in revenue must be equal or greater than 50%, and for 2021, a decline of 20% or greater compared to the same quarter in 2019.

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How Do Eligible Employers Obtain Their ERC?

Omega will work with the eligible employer by reviewing the relevant financial records to calculate the dollar amount of the expected credit.

Our talented team will complete and file the relevant IRS forms on the eligible employer’s behalf and prepare and retain all backup-related documentation.

Key Program Benefits

  • All wages paid between March 13, 2020 and December 31, 2020
  • Payroll tax credit rate – 50 percent of Qualified Wages
  • Limit on per-employee creditable wages – $10,000 for the year
  • Eligibility for the credit – reduction of gross receipts by at least 50 percent of the comparable quarter in 2019 or impacted by a state or local government order
  • 100-employee delineation for determining the relevant qualified wage base (based on 2019 employee count)
  • Beginning on January 1, 2021, and through September 30, 2021
  • Payroll tax credit rate – 70 percent of Qualified Wages
  • Limit on per-employee creditable wages – $10,000 for each quarter
  • Eligibility for the credit – threshold drops to 20 percent. Safe harbor allows employers to use prior quarter gross receipts to determine eligibility. Eligible if impacted by a state or local government order.
  • 500 full-time employee delineation for determining the relevant qualified wage base (based on 2019 employee count)
  • Employers who receive PPP loans may still qualify for the ERC with respect to wages that are not paid for with forgiven PPP proceeds (retroactive to the CARES Act)
  • Allows new employers who were not in existence for all or part of 2019 to be able to claim the credit. This new provision is retroactive to the effective date included in Section 2301 of the CARES Act
  • IIJA retroactively amends and limits availability in the fourth quarter of 2021 to a recovery startup business or businesses that began operations after February 15, 2020

$200+ Million in ERC Credits for Our Clients

Recent ERC Clients

omega accounting sunternal
$140K

ERC Amount

PE omega accounting
$601K

ERC Amount

nexus energy omega accounting
$367K

ERC Amount

Get paid in 3 Steps

Step 1

Upload and calculation

Upload several documents through our secure portal and our experts will calculate the amount you’ll receive for your employee retention tax credit.

Step 2

Amended returns

We’ll prepare and audit all the documentation and help you file your 941x amended returns.

Step 3

Get paid

You’ll receive a check directly from the IRS. Get your employee retention tax credit check now.