Does Georgia Tax The ERC Federal Credit?

Key Takeaways

• Georgia taxes the Employee Retention Credit (ERC), requiring businesses to adjust their state-taxable income by subtracting the wages disallowed federally due to the credit.
• The ERC provides a refundable credit of up to $28,000 per employee for 2021, to help businesses retain employees during the pandemic. 
• Eligible businesses must have experienced significant revenue declines or operational disruptions.
• Employers can retroactively claim the ERC by filing amended payroll tax returns, with deadlines of April 15, 2024, for 2020 claims and April 15, 2025, for 2021 claims.
• At ERTC Express, we specialize in maximizing ERC refunds for Georgia businesses, offering expert guidance, and audit-proofing documentation—at no extra fees.

 

ERC Basics

The Employee Retention Credit (ERC) is a refundable payroll tax credit that provides financial relief to employers affected by the COVID-19 pandemic. Established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, the ERC incentivizes businesses like nail salons and nursing homes to retain employees during periods of economic hardship caused by government-imposed restrictions and revenue declines.

 

The ERC allows eligible employers to claim a credit against employment taxes based on qualified wages paid to employees. Initially, the credit was set at 50% of qualified wages up to $10,000 per employee for the year 2020, resulting in a maximum credit of $5,000 per employee. 

 

However, the credit was expanded in 2021 to cover 70% of qualified wages, with the wage limit increased to $10,000 per quarter, allowing for a potential maximum credit of $28,000 per employee for that year.

 

Differences between the 2020 and 2021 ERC claims by financestrategists.com

 

ERC Application Process and Deadlines

Employers can retroactively claim the ERC by amending their payroll tax returns (Form 941-X) for the relevant quarters. The deadlines for filing these claims are:

 

• For 2020: April 15, 2024
• For 2021: April 15, 2025

 

Despite the ERC program officially ending for most businesses on September 30, 2021, eligible employers can still file for credits related to wages paid during the covered periods.

While the ERC is tax-exempt federally, certain states may apply state taxes to refunds. In the next section, we’ll learn whether Georgia imposes taxes on the 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 Georgia Tax ERC Federal Credit?

Yes, Georgia does tax the Employee Retention Credit (ERC). According to the Georgia Department of Revenue, if a taxpayer claims the ERC, they must subtract the wages disallowed federally due to the credit from their Georgia taxable income. 

 

This means that while the ERC is a federal credit aimed at reducing payroll taxes, its impact is reflected in Georgia’s tax calculations, requiring adjustments to the state income tax return to account for the wages subsidized by the credit. 

 

Choose ERTC Express for Your ERC Filing

At ERTC Express, we’re a specialized tax consulting firm focused on helping businesses, particularly in Georgia, maximize their claims for the ERC. Our streamlined process allows business owners to claim significant tax savings with minimal time investment—often requiring less than 15 minutes of their time.

 

Our “Power of 3” method involves three CPA teams meticulously reviewing each claim, ensuring accuracy and helping businesses secure refunds that are often 40-120% higher than those processed by larger payroll or software companies.

 

How ERTC Express Assists Georgia Business Owners

Here’s how our unique services can help Georgia business owners maximize their ERC claims: 

 

• We focus exclusively on ERC claims, unlike traditional CPA firms that handle a broader range of tax services. This specialization allows us to stay updated on the latest regulations and maximize refunds effectively.
• We don’t require upfront fees — our clients pay only when they receive their ERC funds. This model reduces the financial risk for business owners.
• We emphasize creating audit-proof documentation to support claims—crucial in the event of an IRS audit.
• Our user-friendly system maximizes potential refunds with minimal time commitment.
• We have a team of CPAs and tax professionals who are well-versed in the intricacies of the ERC so our clients receive expert guidance specific to their business.

 

Contact us to benefit from our expertise in ERTC claims. Our service is based on the knowledge and experience of US-based CPAs and includes personalized compliance support to maximize your refund potential.

 

Contact ERTC Express

 

Frequently Asked Questions (FAQ)

 

Does Georgia tax the ERC federal credit?

Yes, Georgia taxes the Employee Retention Credit at the state level. If a taxpayer claims the ERC, they must subtract the wages disallowed federally due to the credit from their Georgia taxable income.

 

Can businesses that received PPP loans still apply for the ERC?

Yes, businesses that received Paycheck Protection Program (PPP) funding are still eligible to file for the Employee Retention Credit. In fact, ERC funds can potentially exceed the amounts received from PPP loan forgiveness.

 

What is ERTC Express?

ERTC Express is a tax consulting firm that specializes in helping businesses claim the Employee Retention Credit (ERC). We provide expert guidance and support to maximize tax savings for eligible employers affected by the COVID-19 pandemic.

 

How can ERTC Express help Georgia business owners claim the ERC?

We have a streamlined process that includes eligibility assessments, precise calculations of potential credits, documentation support, and compliance assistance. Our team of U.S.-based CPAs ensure that business owners can manage the complexities of the ERC with minimal time commitment, often requiring less than 15 minutes of their time.