ERC Credit FAQ #50. Does An Eligible Employer Identify The Average Number Of Full-Time Employees Based On The Aggregation Rule?

Frequently asked question #50 “Does an Eligible Employer identify the average number of full-time employees based on the aggregation rule?” under the Determining Qualified Wages section of FAQs: Employee Retention Credit under the CARES Act, provided by the IRS.gov to help business owners understand the ERC program. Information is below for the question #50 Does an Eligible Employer identify the average number of full-time employees based on the aggregation rule?

ERC Credit Frequently Asked Question #50:

Determining Qualified Wages FAQs

50. Does an Eligible Employer identify the average number of full-time employees based on the aggregation rule?

Yes. All entities are considered a single employer for purposes of determining the employer’s average number of employees if: they are aggregated as a controlled group of corporations under section 52(a) of the Internal Revenue Code (the “Code”); are partnerships, trusts or sole proprietorships under common control under section 52(b) of the Code; or are entities that are aggregated under section 414(m) or (o) of the Code.

Example: Employers O and P each have 75 full-time employees, respectively. Employers O and P are corporations that have each issued a single class of common stock, and a single individual owns more than 80 percent of the common stock of both Employer O and Employer P. Employers O and P are therefore treated as a single Eligible Employer with more than 100 full-time employees for purposes of the Employee Retention Credit.

Accordingly, each is eligible for the Employee Retention Credit only for wages paid to an employee that is not providing services due to either (1) a full or partial suspension of operations by governmental order, or (2) a significant decline in gross receipts.

For more Internal Revenue Service (IRS) Department of the Treasury Employee Retention Credit (ERC) Determining Qualified Wages FAQs, visit the official IRS.gov tax website.

Conclusion and Summary on ERC Credit FAQ #50. Does an Eligible Employer identify the average number of full-time employees based on the aggregation rule?

The “Does an Eligible Employer identify the average number of full-time employees based on the aggregation rule?” is Frequently Asked Question #50 of many commonly asked questions small business owners are wondering about how to file the Employee Retention Tax Credit (ERTC). The IRS ERC Tax Credit program is a confusing and complex process to determine the correct ERC calculations your business qualifies for. Answers to “Does an Eligible Employer identify the average number of full-time employees based on the aggregation rule?”and filling out form 941-X may change slightly from frequently updated rules and regulations from the IRS. Leave a comment below if you have further questions on ERC Credit FAQ #50.

Help Completing / Filing / Claiming the Employee Retention Credit (ERC)

Receive Up to a $26,000 ERC Credit from the IRS Per Employee

Disaster Loan Advisors can assist your business with the complex and confusing Employee Retention Credit (ERC), Form 941-X, and the Employee Retention Tax Credit (ERTC) program. 

Depending on eligibility, business owners and companies can receive up to $26,000 per employee based on the number of W2 employees you had on the payroll in 2020 and 2021.

The ERC / ERTC Tax Credit Program is a valuable IRS tax credit you can claim. This is money you have already paid to the IRS in payroll taxes for your W2 employees.

We DO NOT charge a percentage (%) of your ERC Refund like some companies are charging. Some ERC firms out there are charging upwards of 15% to 35% of your ERC refund!

Our professional ERC fee and pricing structure is very reasonable in comparison.

If you are looking for an ERC Company that believes in providing professional ERC Services and value, in exchange for a fair, reasonable, and ethical fee for the amount of work required, Disaster Loan Advisors is a good fit for you. 

Schedule Your Free Employee Retention Credit Consultation to see what amount of employee retention tax credit your company qualifies for.

Cover Image Credit: Irs.gov / ERC FAQ / Disaster Loan Advisors

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