Are Farms Eligible for Employee Retention Credit (ERC)?

Unlocking Eligibility: Employee Retention Credit for Farms’ Staff

Key Takeaways

  • Farm operations may be eligible for the Employee Retention Credit (ERC) which offers a substantial tax benefit.

  • Even farms that received PPP loans could qualify for the ERC under certain conditions.

  • Understanding the eligibility criteria, such as experiencing a decline in gross receipts or a full or partial suspension of operations due to government orders, is crucial.

  • There is a step-by-step process to claim the ERC, which involves evaluating eligibility, calculating qualified wages, and submitting the necessary forms.

  • Seeking expert advice can maximize the ERC benefits and ensure compliance with IRS regulations.

Are Farms Eligible for ERC Refund?

For those in the farming industry, navigating the complexities of tax incentives can be as challenging as predicting the weather. But here’s some sunshine on a cloudy day: farms may indeed be eligible for the Employee Retention Credit (ERC), a significant tax relief designed to keep workers employed during challenging economic times. This incentive is not just for small businesses; it’s available for agricultural operations of various sizes.

So, what exactly is the ERC? In a nutshell, it’s a refundable tax credit against certain employment taxes equal to a percentage of the qualified wages an employer pays to employees. This initiative was introduced to help businesses retain employees during the COVID-19 pandemic. Now, you might wonder, “Does this apply to my farm?” The answer is, potentially, yes. If your farming business experienced a full or partial suspension of operations due to government orders related to COVID-19 or a significant decline in gross receipts, you might be in for a financial windfall.

Incorporating these aspects, farms have navigated various government mandates that impact operations, such as:

  • Mandatory cleaning or sanitizing procedures;

  • Social distancing rules and capacity restrictions;

  • Government stay-at-home orders;

  • Supply chain disruptions.

Let’s break this down. If your farm had to adjust operations due to government-imposed restrictions or if your sales took a hit because of the pandemic, the ERC could provide much-needed relief. It’s a way to recoup some of the costs associated with keeping your hardworking employees on the payroll during those rough patches.

Common Misconceptions about ERC Refund for Farms

Amid the potential advantages, confusion has swirled around the ERC. It’s time to clarify a few points:

  1. PPP and ERC are not mutually exclusive: Farm owners can leverage both the PPP and the ERC benefits. The crucial detail is that ERC cannot be claimed for wages that were covered by forgiven PPP loan amounts.

  2. ERC is not solely for small businesses: The ERC initially targeted businesses with 100 or fewer employees in 2020, but this limit was increased to 500 for 2021. This expansion means that larger farms should also consider their eligibility.

  3. Partial shutdowns qualify: Farms that did not shut down entirely but operated at reduced capacity or with altered hours due to government mandates are eligible for the ERC.

Understanding tax credits can be daunting, yet overlooking the ERC might result in missing out on substantial financial support. These funds can help sustain your farm, ensuring its continued operation and contribution to the community.

How ERTC Express Helps Farms Maximize ERC Benefits

Now, let’s talk about maximizing your potential ERC benefits. Navigating the IRS’s rules can be daunting, and that’s where ERTC Express comes into play. They offer a streamlined process to help you determine eligibility, calculate your credit, and file the necessary paperwork.

Step-by-step Guide: How ERTC Express Optimizes Your Refund

ERTC Express specializes in helping businesses, including farms, to understand the intricacies of the ERC. They take into account the unique aspects of agricultural operations and provide personalized service to ensure you receive every dollar you’re entitled to. Let’s walk through the steps ERTC Express will take you through to ensure you get the maximum refund possible.

ERTC Express Step-By-Step Guide
ERTC Express Step-By-Step Guide


The first step is to determine whether your farm meets the ERC eligibility criteria. This involves a thorough review of your operations during the specified periods and any government orders that may have affected your business.


Next, ERTC Express will help you calculate the qualified wages that are eligible for the credit. This includes understanding the nuances of what constitutes ‘qualified wages’ and ensuring all documentation is accurate and compliant.

Finally, they will guide you through the process of submitting your claim to the IRS and follow up to ensure that you receive your funds in a timely manner.

By following these steps, ERTC Express aims to make the process of claiming the ERC as seamless as possible for farm owners.

Maximize Your Farm’s ERC Refund with ERTC Express

Get Maximum Farms ERC Refund with ERTC Express

Understanding the nuances of the ERC can be the difference between just getting by and truly thriving in the agricultural sector. That’s where ERTC Express steps in – to help you not only understand these nuances but also to ensure you’re getting the maximum refund possible. Their expertise in the field of tax incentives, especially as they apply to farms, makes them a valuable ally in these financially uncertain times.

Why Farms Trust ERTC Express:

  • IRS Compliance: Navigating the IRS’s complex regulations is no small feat. ERTC Express ensures that your claim is fully compliant, minimizing the risk of audits and adjustments.

  • Trusted by the AICPA: Recognition by the American Institute of CPAs speaks volumes. It means ERTC Express is acknowledged for their expertise and reliability in handling tax-related services.

  • U.S.-Based CPAs: Having a team of certified public accountants based in the U.S. means you’re getting advice and service that’s up-to-date with the latest federal tax laws and regulations.

  • Power of Three – Audit Defense: Should the IRS have any questions about your ERC claim, ERTC Express has your back. They provide audit defense, a service that represents you and your interests during the audit process.

  • Refund Maximization: With a deep understanding of the tax code and a commitment to farmers, ERTC Express is dedicated to maximizing your refund, ensuring you receive every dollar you deserve.

With ERTC Express by your side, your farm stands to gain the full benefits of the ERC, injecting crucial financial support into your operations during these challenging times. Our specialized knowledge simplifies the claims process and ensures you reap the maximum possible benefits, helping sustain and grow your agricultural business. Connect with ERTC Express now to unlock the financial assistance essential for flourishing in the evolving landscape of the agricultural sector.

Frequently Asked Questions (FAQ)

Can farms with PPP loans still qualify for ERC?

Absolutely! Initially, farms that received PPP loans were ineligible for the ERC. However, subsequent legislation removed this restriction. Now, even if you’ve received a PPP loan, you can still claim the ERC, provided you meet the eligibility criteria and the wages are not used for both programs.

How do I determine if my farm faced a government-mandated shutdown?

Determining a government-mandated shutdown requires a look back at the restrictions placed on your business. If you were required to reduce operating hours, limit customer capacity, or fully shut down due to state or local health orders, you likely experienced a partial or full shutdown. Documentation of these orders and their impact on your operations will be key to substantiating your claim.

What are the deadlines for applying for the ERC refund?

Time is of the essence when it comes to the ERC. The deadlines for applying are tied to the filing of your federal employment tax returns. Typically, you can claim the ERC for wages paid up to four years back. This means that for wages paid in 2020 and 2021, you have until April 15, 2024, and April 15, 2025, respectively, to amend your returns and claim the credit. It’s crucial to act promptly to take advantage of this opportunity.

Are part-time farmer workers’ wages eligible for ERC?

Yes, part-time workers can be part of your ERC claim. The credit is based on qualified wages, which include wages paid to all employees, whether full-time or part-time. The key is that these wages must have been paid during a time when your business was impacted by COVID-19 restrictions or during a period of significant decline in gross receipts.

What kind of records do I need to provide for ERC claims?

When it comes to the ERC, maintaining proper documentation is crucial. You’ll need to provide comprehensive records that show how your business was affected by the pandemic and that the wages claimed for the ERC were paid during eligible periods.

Here’s a rundown of the types of records you should keep:

  • Documentation to support the eligibility of your business, such as government orders affecting operations or financial records showing a decline in gross receipts.

  • Detailed payroll records for each employee, including the hours worked and the wages paid.

  • Health insurance premium payments made on behalf of employees, if they are included in qualified wages.

  • Any other relevant financial documents to prove the payment of qualified wages and health plan expenses.

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