Oklahoma Employee Retention Credit: Overview

If you’re an Oklahoma business owner, wondering about your eligibility for the Employee Retention Credit (ERC), you’re in the right place. Given the economic challenges businesses are facing, the ERC can offer much-needed financial respite. This article aims to provide you with a clear understanding, of how the ERC functions within the Sooner State. Whether you operate in the energy sector, agriculture, or aerospace. Continue reading to find out, how you can substantially lower your payroll costs.

Do I Qualify for ERC in Oklahoma?

In Oklahoma, the qualifications for the ERC mostly mirror federal standards. Eligibility hinges on either:

• A notable slump in gross receipts
• A government-mandated halt or partial closure of your operations

You must also employ:

• At least two individuals with W-2 status during any of the fiscal quarters

During 2020, companies had to show a 50% drop in quarterly revenue, to be eligible for up to $5,000 per worker. In the following year, this threshold was lowered to a 20% dip. Allowing for a maximum claim, of $7,000 per staff member each quarter. In the majority of cases. Applying these credits retroactively is an option, thus it’s important to stay well-informed about the shifting regulations. ^{(1, 2)}

Services Available to Help Oklahoma Businesses Apply for ERC

Applying for the ERC doesn’t have to be complex. Fundwise is designed to simplify the application process. Submit an online application, providing basic details such as;

• Your name
• Business name
• Number of W2 employees

Fundwise then calculates your potential ERC amount. Their team of experts takes care of the IRS paperwork, ensuring you get your funds directly. Fees are based on your successful funding. Meaning you are not paying out of pocket, before receiving your payment.

How Does the ERC Interact with Other Oklahoma Tax Credits?

In Oklahoma. The Employee Retention Credit (ERC) can be strategically paired with a host of state-specific financial incentives. Particularly if your business is in the energy sector, agriculture or aerospace. Here are some Oklahoma-specific programs that should be on your radar:

• Quality Jobs Program: Tailored for businesses creating quality employment opportunities. This is applicable across multiple sectors, including agriculture and aerospace.
• Small Employer Quality Jobs Program: Designed for smaller enterprises, this program is beneficial for agricultural businesses looking to expand.
• Renewable Energy Generation Tax Credit: This is particularly valuable for businesses in the energy sector, focusing on renewable sources.
• Research & Development Incentives: Ideal for businesses in any sector that are investing in research activities, including aerospace and energy.
• Aerospace Engineer Workforce Credits: These are targeted at aerospace companies, looking to hire engineers and other skilled workers.

Like many bordering states. Oklahoma is proactive in revising and occasionally launching new aspects of these programs. Therefore, it’s crucial to stay informed through official state channels. This layered approach, offers businesses multiple avenues for financial respite and growth. It’s essential to keep on top of Oklahoma’s continually changing landscape of financial incentives, to maximize these benefits fully.

*Please note, you are allowed to also claim the Quality Jobs Program, the Small Employer Quality Jobs Program, 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 Oklahoma

Per the 2020 data from the U.S. Census Bureau. Oklahoma’s population reached 3,959,353, marking a 5.54% growth since 2010. The state also ranks 28th in terms of population size across the U.S. In the realm of finance, Oklahoma has specialized services aimed at its energy sector. This reflects its crucial role in U.S. energy production. Additionally, the state features distinct financial establishments, that provide customized loans and services to its Native American communities. ^{(4, 5, 6)}

Conclusion

If you’re an Oklahoma business owner, who is focused on financial stability while retaining your workforce. The ERC presents a valuable opportunity. With the potential for substantial savings per employee, this is an avenue you really do not want to miss. For more details click below, as Fundwise will be able to guide you through the entire application process.

FAQ

1. Are Non-Profits Eligible for the ERC?

Non-profit organizations can generally avail themselves of the ERC, under similar conditions as commercial enterprises.

2. Are Government Entities Eligible?

Most government bodies are excluded, although public colleges and universities are notable exceptions.

For additional FAQ questions, click here.

Click here to navigate back to the homepage. Or, get more information on neighboring states, when you read the Employee Retention Credit Minnesota overview.

Last reviewed September 2023