Skip to main content

VGM & ASSOCIATESHealthcare MSO

Search GO

Search GO

VGM & ASSOCIATESHealthcare MSO LEARN ABOUT VGM

Revisions to the Employee Retention Tax Credit Program – May Be Worth a Second Look

Published in Government Relations on August 26, 2022

Several changes have occurred with the COVID-19 Employee Retention Credit (ERC) since its inception in 2020. If you or your tax advisor looked at this program when it was created in 2020 and decided that either you didn’t qualify for it or it wasn’t worth pursuing for some other reason, it may be worth taking another look because of the changes made to the program.

When the CARES Act was initially passed, it established the ERC which allowed eligible businesses to qualify for a tax credit if certain criteria were met. It was designed to help employers keep their staff employed, especially if their gross receipts declined by a certain percentage. At first, employers could qualify for a credit of up to $5000 per year for each of their employees based on wages paid between 3/12/2020 and 1/1/2021. They also had to show a 50% decline in gross receipts or have experienced a full or partial shutdown because of government limits on commerce. If they received a Paycheck Protection Program (PPP) loan, they couldn’t qualify for the ERC.

However, several changes have been made to the program since inception, and it is now easier to qualify for the ERC, and more tax credits are available now than in 2020. A few of the key changes to the program are as follows:

The ERC tax credit could be up to $21,000 ($7000 per quarter for the first 3 quarters of 2021) per employee per year instead of the $5,000 that was previously available.
Employers now only need to show that they experienced a shutdown or a 20% decline in gross receipts rather than the 50% decline that was required initially.
Employers who received a PPP loan are no longer automatically excluded.

It is also worth pointing out that just because you already filed your taxes for 2020 and 2021, and the program technically had an expiration date of 10/1/2021, that does not mean that you can no longer apply for the ERC. Employers have 3 years to determine eligibility, and can retroactively apply for the tax credit at any point during those 3 years. The IRS has created and released a table which helps explain the program, including eligibility requirements and what is available to employers during which date ranges. That chart, as well as other information and resources related to the program, can be found here.

Please consult with your tax advisor to determine the best course of action for your business as it relates to this ERC.

TAGS

From Our Experts

The Return of Competitive Bidding thumbnail

The Return of Competitive Bidding The Centers for Medicare & Medicaid Services (CMS) appear to be laying the groundwork for another round of the Competitive Bidding Program (CBP). While full implementation will take a couple of years, an official announcement is expected this summer—potentially as early as July.

Out With The Old RAC, In With The New thumbnail

Out With The Old RAC, In With The New On April 28, 2025, CMS awarded Cotiviti GOV Services LLC, the new RAC Recovery Audit Contractor (RAC) Region 3, 4, and 5 contracts. RAC Region 3 includes the following Medicare Administrative Contractor (MAC) jurisdictions: JJ, JM, and JN. RAC Region 4 includes jurisdictions: JE, JF, and JL. And RAC Region 5 includes jurisdictions: JA, JB, JC, JD, as well as the HH/H MACs: J6, J15, JK, and JM.

Iowa Leads the Charge! All Four Representatives Back H.R. 2005—Will Your State Step Up? thumbnail

Iowa Leads the Charge! All Four Representatives Back H.R. 2005—Will Your State Step Up? At VGM Group, Inc. we have the pleasure of serving our members and partners throughout the country.  One of the many ways we do this is through legislative advocacy, working with our partners to create a more equitable and effective healthcare system. All our VGM units are dedicated to advancing our partners' businesses, streamlining operations, and working every day to enhance reimbursement for the quality in-home healthcare our industry provides all people.

Mike Hamilton Of ADMEA Honored With The Mal Mixon Advocate Award thumbnail

Mike Hamilton Of ADMEA Honored With The Mal Mixon Advocate Award Last week, during the 2025 AAHomecare Washington Legislative Conference, Mike Hamilton, Executive Director of ADMEA, was honored with the prestigious Mal Mixon Advocate Award.

VGM Senior Leaders Engage in Advocacy at AAHomecare Legislative Conference thumbnail

VGM Senior Leaders Engage in Advocacy at AAHomecare Legislative Conference This week, VGM leaders attended the AAHomecare Legislative Conference in Washington, D.C., a premier event dedicated to advancing healthcare policy and advocacy. AAHomecare provided attendees with valuable insights, equipping them with key discussion points and strategies for effective meetings with legislators.

Champion of Change: Paula Vineyard of Elana Health & Loop Medical Leads Healthcare Advocacy in West Virginia thumbnail

Champion of Change: Paula Vineyard of Elana Health & Loop Medical Leads Healthcare Advocacy in West Virginia On Thursday, May 8, Paula Vineyard, owner of Elana Health & Loop Medical, took a pivotal step in healthcare advocacy by hosting a meeting with Tyler Ohrn, Field Representative for Congresswoman Carol Miller of West Virginia's First District. The hour-long discussion centered on the pressing need for congressional support of H.R. 2005.

Manufacturer Survey On Tariffs thumbnail

Manufacturer Survey On Tariffs The American Association for Homecare and VGM Group are seeking valuable insights from durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) manufacturers and vendor partners regarding tariffs imposed on certain countries.

Key Payers Denied Your Application Citing Their Network Is Closed – Now What? thumbnail

Key Payers Denied Your Application Citing Their Network Is Closed – Now What? This experience has increasingly become one of the most common questions we receive from our provider members as more and more payers move to narrow their provider networks. The reasons payers seek to narrow their networks are simple. Payers are highly motivated to achieve their goals while doing less work and are not required to allow providers into their networks unless there is a patient access issue. For those of you fortunate enough to be a part of a narrow network, this may not be much of

Give your business an advantage over the competition.

Become a Member