Employee Retention Credit Georgia Tax Benefits

As a business owner in Georgia. You may be curious about qualifying for the Employee Retention Credit (ERC), especially given the current economic uncertainties. If so, you can be rest assured you’re not the only one. This page serves as a brief resource on how the ERC operates. Specifically in the context of Georgia’s diverse business sectors, be it tech, agriculture or retail. Continue reading below, to discover how this tax credit can significantly reduce your workforce costs.

Do I Qualify for ERC in Georgia?

In the state of Georgia. Qualifying for the Employee Retention Credit (ERC), largely aligns with federal guidelines, focusing on:

• A substantial dip in gross earnings
• Business disruptions due to governmental orders, either partial or complete

You’re also required to have:

• More than one W-2 employee for any given fiscal quarter

During 2020, you could claim up to $5,000 per employee, if your business experienced a quarterly gross receipts drop of 50%. This criteria was adjusted in 2021. Where a decrease of 20%, now allows for claims of up to $7,000 for each employee, every quarter. Keep in mind that in many cases, you can apply these credits retroactively, as the tax year in question is crucial. With the likelihood of approval being high, it’s vital to familiarize yourself with these conditions. ^{(1, 2)}

Services Available to Help Georgia Businesses Apply for ERC

Navigating the ERC application can seem overwhelming, but you’re not alone — help is just a click away. Our platform is designed to streamline your application process. Simply input essential details;

• Your name
• Business name
• Number of W2 employees

Once submitted, Fundwise will evaluate your potential ERC benefits for you. Supported by a dedicated team of legal specialists, CPAs and industry experts. Fundwise will take care of the cumbersome IRS paperwork. This ensures that you’ll receive your eligible funds directly from the IRS, hassle-free. Our fee structure is straightforward; we only charge based on successful funding received.

How Does the ERC Interact with Other Georgia Tax Credits?

In Georgia, the Employee Retention Credit (ERC) isn’t the only financial incentive available to businesses. It can be effectively combined with various state-specific tax credits, to amplify your financial gains. Here are some examples;

• Quality Jobs Tax Credit: Aimed at businesses creating high-paying jobs. This credit can be especially beneficial in fostering employment.
• Research & Development Tax Credit: Designed to promote innovation, this credit is available for businesses investing in R&D activities.
• Georgia Film Tax Credit: For companies involved in film or multimedia production, this credit can be a significant boon.
• Georgia Job Tax Credits: These are geared towards businesses in specific industries or counties, offering credits for job creation.

Georgia is known for frequently updating and sometimes expanding these programs. Making it crucial to stay informed through state resources. The strategy of leveraging both federal and state incentives, can offer businesses in Georgia a multi-faceted approach to financial relief and growth. Therefore, keeping abreast of the latest updates is essential, for maximizing your financial benefits in this continually evolving landscape.

*Please note, you are allowed to also claim the Quality Jobs Tax Credit, Georgia Film 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 Georgia (GA)

• According to the U.S. Census Bureau. Georgia’s population stood at 10,711,908 in 2020, ranking it as the 8th most populous among the 50 states. It is also the 24th largest in terms of geographical area.
• Known as “Transaction Alley”. Atlanta serves as the headquarters for numerous payment processing firms, illustrating its prominence in this sector.
• In addition to its role in payment processing. Atlanta is gaining recognition as a pivotal center for fintech innovation. Hosting an array of both startups and established companies specializing in this field. ^{(4, 5)}

Conclusion

The ERC is an indispensable asset, for business owners in Georgia. Owners striving to navigate financial obstacles while maintaining staff. Given the high likelihood of being approved. Combined with the potential for substantial savings, on a per-employee basis. Bypassing the ERC could be a costly mistake. If you require any additional info. Be sure to reach out to Fundwise, as they are dedicated to guiding you through every phase of the application process.

FAQ

1. Is the ERC Taxable?

The ERC is not considered taxable income and serves as a credit against federal employment taxes.

2. What Are “Qualified Wages”?

Qualified wages, are salaries paid during periods when the business was either partially or fully suspended, due to government orders. Or, during periods of significant decline in gross receipts. This also encompasses qualified healthcare costs.

To read more FAQ questions, click here.

Click here to arrive back to the homepage. To get a better idea of the New York State Employee Retention Credit application process, click here.

Last reviewed September 2023