Employee Retention Credit (ERC)

Employee Retention Credit (ERC) Resetting your business for 2022

ERC Overview • CARES Act • Reward employers for retaining their employees • Eligible Employers • Full or Partial Suspension of Business operations due to a government order or • Decline in Gross Receipts (50% in ‘20, 20% in ’21 ) • Tax Credit • Refundable Payroll Tax Credit based on Qualified Wages • Taken Against Employer Federal Payroll Tax Deposit (Not FUTA) • Refunded to Taxpayer Regardless of Liability • Maximum Credit • 50% of $10,000 in qualified wages in 2020 (Annual Wage Cap) • 70% of $10,000 in qualified wages in 2021 (Quarterly Wage Cap) • $5k 2020 + ($7k x 3Q 2021) = $26k per employee potential • Small Empoyers credit range from $3,000 - $16,000 per employee (‘20 and ‘21) • Large Employers credit ranges from $750 - $6,500 per employee (‘20 and ‘21) • ERC amounts determined after underwriting analysis • WAGES USED ALREADY FOR PPP FORGIVENESS CURRENTLYCAN’T BE USED FOR ERC PURPOSE

Qualified Wages QW are paid wages, compensation and employer health expenses paid to eligible employees starting on 3/11/20 and ending on 9/30/21. Employer size will determine the exact definition of Qualified Wages when calculating Credits. Small Employers Large Employers • 2020 - <100 • 2020 - >100 • 2021 - <500 • 2021 - >500 • QW is equal to all wages and • QW is equal to non-service employer provided healthcare wages and portions of employer costs. provided healthcare costs. Credit Optimization service is available.

Impact of Government Orders, Full or Partial • Restaurant – Closures, reduced hours, reduced capacity • Manufacturer – Extra cleaning, supply chain issues, slow down in business operations • Non-Profit – Suspension of charity events, change in job roles • Private Schools – Increased sanitizing, installing protective equipment, temperature checks • Eligibility analysis is performed on a quarterly basis

About Synergi • Synergi Partners is an industry leader in identifying and processing business tax credits and incentives. Synergi’s Government Relations Team is active with outside counsel and Congressional Members • Executive team of veteran tax credit experts possessing more than 200 years of combined know-how with 40 years experience in the industry. • Specialize in helping employers obtain federal and state tax credits as well as disaster reief encentives. • Audit Support Protection