Does Florida Tax ERC Federal Credit?

Key Takeaways

• Florida does not tax the Employee Retention Credit (ERC) because it is a federal tax credit and does not result in a state tax obligation.
• To qualify for the ERC, businesses must have experienced a full or partial suspension of operations or a significant decline in revenue due to COVID-19 restrictions.
• Employers can retroactively claim the ERC by amending their payroll tax returns, with a deadline of April 15, 2025, for 2021 claims.
• At ERTC Express, we provide expert guidance to maximize refunds for Florida businesses.

 

ERC Basics

The Employee Retention Credit (ERC) is a refundable payroll tax credit established by the U.S. government to help businesses like nail salons, restaurants, and hotels affected by the COVID-19 pandemic.

 

It was introduced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. It has undergone several amendments, including the Consolidated Appropriations Act of 2021 and the American Rescue Plan Act (ARPA) of 2021.

 

The ERC rewards employers who retained employees during periods when business operations were significantly disrupted due to government mandates or a substantial decline in revenue. Eligible employers can claim a credit based on a percentage of qualified wages paid to employees.

 

Key Features of the ERC

 

• Credit Amount: For 2020, the ERC provided a credit of 50% on up to $10,000 of qualified wages per employee for the year, yielding a maximum credit of $5,000 per employee. In 2021, this was increased to 70% on up to $10,000 of qualified wages per quarter, allowing for a maximum credit of $7,000 per employee per quarter, totaling up to $28,000 for the year.
• Eligibility: To qualify for the ERC, businesses must have experienced a full or partial suspension of operations due to government orders or a significant decline in gross receipts. The program was available to employers of any size, with specific rules for those with fewer than 100 or 500 employees.
• Filing and Deadlines: Although the ERC program officially ended for most businesses on September 30, 2021, employers can still retroactively claim the credit by amending their payroll tax returns for eligible periods. The deadline for claiming the ERC for 2021 is April 15, 2025.

 

Here are the differences between the 2020 and 2021 ERC claims (financestrategists.com).

 

In the next section, let’s learn if Florida taxes your ERC credit. 

 

ERTC Express: Maximize Your Employee Retention Credit (ERC)   Secure the maximum ERC refund effortlessly with ERTC Express. Our US-based CPAs specialize in ERTC claims, using a “Power of 3” system to ensure each submission is audit-ready. Typically outperforming standard claims by 40-120%, our client-centric service charges only after you receive your funds, ensuring our goals align with your success. Enjoy dedicated support and significant financial benefits with ERTC Express. Get expert help today!

 

Does Florida Tax ERC Federal Credit?

No, Florida does not tax the ERC. The ERC is governed by federal tax laws and regulations, and it does not create a direct tax liability at the state level.

 

Nonetheless, businesses must still consider how this credit affects their financial situation.

 

Choose ERTC Express for Your ERC Filing

At ERTC Express, we’re dedicated to helping business owners in Florida better manage the process of claiming the ERC.

 

We use our “Power of 3” approach, where three CPA teams carefully cross-check each claim to ensure accuracy and help businesses secure larger refunds—often 40-120% higher than those processed by larger payroll or software companies.

 

How ERTC Express Assists Florida Business Owners

 

• Expert Guidance: We have significant expertise in ERTC filings in multiple states so we can help businesses understand eligibility criteria and potential refund amounts.
• Comprehensive Support: We help businesses by assessing their eligibility, preparing documentation, and filing claims.
• Maximum Refunds: Our service focuses on finding the maximum credit available to each business, often achieving higher refunds than traditional payroll or software companies because of our CPA-led approach.
• Audit Defense: We use a “Power of 3” system, where three separate CPA teams verify the final credit amount before submission to enhance the claim’s defensibility against possible audits.
• No Upfront Fees: We operate on contingency billing—businesses are only charged once they receive their ERC funds.

 

Reach out to us at ERTC Express to benefit from our specialized focus on ERTC claims, U.S.-based CPA expertise, and personalized support that ensures compliance and maximizes your refund potential.

 

Contact ERTC Express

 

Frequently Asked Questions (FAQ)

 

Does Florida tax the Employee Retention Credit?

No, Florida does not tax the Employee Retention Credit (ERC). The ERC is a federal tax credit and is not subject to state income tax in Florida.

 

What is ERTC Express?

ERTC Express is a specialized service that helps business owners claim the Employee Retention Tax Credit (ERTC), a federal tax credit designed to support businesses that retained employees during the COVID-19 pandemic.

 

How can ERTC Express help my Florida business?

At ERTC Express, we provide comprehensive support in the following areas:

• Determine if your business qualifies for the ERTC.
• Calculate the potential ERC amount you can claim.
• Assist with the necessary documentation for your claim.
• Handle the filing process to ensure accuracy and timeliness.
• Provide support and documentation in the event of an IRS audit.

 

What makes ERTC Express unique?

• We specialize solely in ERTC claims, allowing for tailored strategies.
• The initial assessment can be completed in less than 15 minutes.
• There’s no upfront fee — we charge you only when you receive the ERC refund.
• Our CPA-led approach often results in higher refunds compared to traditional payroll or tax services.