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Tax Experts Since 2008

ERC for Manufacturing Companies

Do you own a manufacturing facility that was impacted by the COVID-19 pandemic? The Employee Retention Credit (ERC) is available for manufacturing facilities in the following industries:

  • Automotive

  • Raw materials

  • Clothing and textiles

  • Electronics

  • Consumer goods

  • Food and drink

 

Qualifying manufacturing facilities should apply as soon as possible to receive their credit using the team of certified ERC specialists at Five Star ERC Experts. There is still time before the deadline for ERC but applying as soon as possible will help you receive your much needed Coronavirus aid faster.

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ERC Qualifications for Manufacturing

Any manufacturing facility can apply for the ERC credit as long as they do not exceed 100 full-time employees for the 2020 tax year and 500 employees for the 2021 tax year. To apply, manufacturing companies must use qualified wages paid to W-2 employees during the tax year in which you are applying. These employees include but are not limited to:

  • Engineers

  • Machinists

  • Welders

  • Electricians

  • Assembly line workers

  • Drivers

  • Manufacturing supervisor

Qualified wages paid to any full-time or part-time employees during 2020 or 2021 are eligible. Each employee could earn your business up to $21,000.

Full or Partial Suspensions in Manufacturing During COVID

During the COVID-19 pandemic, many businesses suffered as a result of supply chain disruptions and government restrictions that caused either a full or partial suspension of business operations. Manufacturing businesses may qualify for the ERC tax credit due to these suspensions, including:

  • Limited operations due to social distancing mandates

  • Inability to operate due to government lockdowns

  • Reduced shipments due to lack of manufactured goods or halts in shipping

 

In addition, some government mandates required businesses to implement new cleaning and safety protocols that may have slowed business operations to comply with COVID-19 regulations. If manufacturing businesses were not fully or partially suspended, they may still qualify if they saw a decline in gross receipts over 50% in the 2020 or 2021 tax year.

ERC Consultants for Manufacturing Businesses

Apply for the ERC tax credit for your manufacturing business with the help of a certified ERC consultant. Unlike other ERC mills that could scam businesses looking to apply for the tax credit, Five Star ERC Experts works only with certified tax attorneys and accountants to ensure you are fully eligible before applying.  

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