Ohio Employee Retention Credit Application Info

If you’re an Ohio business owner puzzled about your eligibility for the Employee Retention Credit (ERC), you’re in good company. Amid economic uncertainties, the ERC could provide a much-needed financial cushion. This article aims to shed light on the ERC, specifically tailored to Ohio’s unique business environment. Whether you’re in manufacturing, healthcare, or the service industry, you’ll find this guide invaluable. Continue reading to learn how you could dramatically reduce your employment costs with this tax credit.

Do I Qualify for the OH Employee Retention Credit?

In the state of Ohio, eligibility for the ERC largely aligns with federal criteria, which emphasize;

• A significant downturn in gross revenue
• Government-mandated full or partial business shutdowns

Another condition is having:

• At least two employees on W-2 during any fiscal quarter

For the 2020 tax year. A drop of 50% in quarterly gross revenue, was necessary to qualify for a maximum credit of $5,000, for each employee. This requirement was relaxed in 2021, with a 20% revenue decline. This decline allowed for claims, up to $7,000 per employee every quarter. Keep in mind that the specific tax year does matter. Although in many situations retroactive claims are permitted. Given the high likelihood of approval, it’s crucial to be well-versed in these guidelines. ^{(1, 2)}

Services Available to Help Ohio Businesses Apply for ERC

Applying for the ERC can be challenging, but help is at hand. Fundwise has an online platform, that helps navigate you through processing your application. Submit details details such as;

• Your name
• Business name
• Number of W2 employees

Fundwise will then calculate your prospective ERC amount. Their experienced team handles all IRS paperwork, helping to ensure you receive funds directly, with minimal hassle. Fees are competitive and based payed out on a contingency basis, once you have been funded successfully.

How Does the ERC Interact with Other Ohio Tax Credits?

The ERC in Ohio, can be compatible with a variety of other state-specific financial incentives. This can enhance your opportunities for economic relief and growth. Some of these include;

• Research & Development Investment Tax Credit: Aimed at spurring innovation, this credit supports businesses engaging in R&D activities.
• Job Creation Tax Credit: This is a performance-based credit, that essentially rewards companies for creating new full-time jobs.
• Historic Preservation Tax Credit: For companies renovating historic buildings, this credit can be quite beneficial.
• Technology Investment Tax Credit: This encourages investment in Ohio-based technology companies, offering credits against the state’s income tax.
• New Markets Tax Credit: This aims to attract private investment in low-income communities, to create jobs and foster economic growth.

It’s essential to stay informed about the latest state announcements since Ohio frequently updates and sometimes introduces new tax credits and financial incentives. This evolving landscape provides businesses with a multitude of avenues for financial assistance. Therefore, blending both federal and state-level benefits can be a highly effective strategy for maximizing your financial relief.

*Please note, you are allowed to also claim the Technology Investment Tax Credit, New Markets Tax Credit, WOTC etc. On the condition that the wages utilized for determining these payouts. Are not simultaneously used for calculating the Employee Retention Credit (ERC). ⁽³⁾

More Details About Ohio (OH)

• With a population approaching 11.8 million. Ohio holds the distinction of being the seventh most populous state in the nation, as well as the tenth most densely populated.
• Columbus stands as a major hub for the insurance sector, hosting firms such as Nationwide Insurance.
• Financial giants like Fifth Third Bank are headquartered in Ohio, underscoring the state’s key role in the financial landscape of the Midwest. ^{(4, 5, 6)}

Conclusion

If you’re an Ohio business owner, navigating financial complexities while striving to retain your staff. The ERC is an indispensable resource. With high approval rates and the prospect of saving up to $26,000 per employee. The ERC is an opportunity too significant to ignore. Don’t hesitate to inquire about more details, as Fundwise is here to assist you through every phase of the application process.

FAQ

1. Is the ERC Only Applicable to U.S. Businesses?

Yes. The ERC is a program, strictly for businesses operating within the United States. It is administered by the IRS.

2. Are Seasonal Workers Included?

Seasonal employees can be factored into the ERC calculation, provided they meet the eligibility criteria.

To read more FAQ questions, click here.

Read more information about how the Oklahoma Employee Retention Credit eligibility is determined for employers. Or, to navigate back home, click here.

Last reviewed September 2023