How to Begin Qualifying for the ERC
If your company experienced any of the following examples, here is the link to begin qualifying.
A Covid-19 event is defined as the following: The operation of a trade or business is partially suspended if a government authority imposes restrictions on the employer’s operations by limiting commerce, travel, or group meetings due to COVID-19 such that the employer can still continue, but not all of its typical operations.
Example 1: An employer that operates an essential business is not considered to have a full or partial shutdown if government orders allow them to remain open. However, an employer that operates an essential business may be considered to have a partial suspension if more than a nominal portion of its business operations are suspended - IRS FAQ (See also, Section D. Full or Partial Suspension of Trade or Business Operations in N-2021-20).
Example 2: An employer may be considered to have a full or partial suspension if the business’s suppliers are unable to make deliveries of critical goods or materials due to a government order that causes the supplier to fully or partially suspend its operations - (See also Q&A 12 of N-2021-20).
Example 3: If employers could not obtain telework capabilities that allowed their business to operate as usual (adequate IT support, etc.). The employee’s work was not portable, or the presence of having an employee in the physical workspace plays a critical role - IRS FAQ (See also Q&A 15 & 16 of N-2021-20).
Example 4: If an employer’s workplace is closed due to a government order for certain purposes, but the employer’s workplace may remain open for other limited purposes, the employer’s operations would be considered to be partially suspended if more than a nominal portion of the business cannot be performed - IRS FAQ (See also Q&A 17 and more on N-2021-20).
Example 5: A restaurant must close its on-site dining or every other table due to government orders but can still operate its drive thru or carry out service. This would be considered partially suspended. (See also Q&A 17 on N-2021-20).
Note: The mere fact that an employer must make a modification to business operations due to a government order does not result in a partial suspension unless the modification has more than a nominal effect on the business operations. 10 percent will be deemed to have more than a nominal effect (read more: page 39 of n-2021-20).