Small Business Taxes

Employee Retention Credit (ERC): What Small Businesses Should Know

Updated 2025-10-28

Eligibility foundations, qualified wages concepts, aggregation rules at a high level, and documentation tips—without date‑specific claims.

  1. Eligibility foundations
  2. Qualified wages & health costs
  3. Aggregation & related entities
  4. Documentation & risk management

Eligibility foundations

At a high level, ERC analysis considered operational disruptions or significant declines in gross receipts, with special rules for startups.

Qualified wages & health costs

Definitions varied by employer size; health plan expenses often counted. Coordinate with PPP forgiveness and other credits to avoid double‑dipping.

Aggregation & related entities

Common ownership may require grouping entities for headcount and eligibility tests; apply controlled group rules carefully.

Documentation & risk management

Maintain memos, gross‑receipt calculations, government‑order references, payroll reports, and amended return copies. Watch for promoter‑driven risks.