Supply Chain Disruption Alone Doesn’t Warrant ERC

The employee retention credit (ERC) rewards companies that kept employees on the payroll during COVID-19 government-mandated shutdowns that caused a partial or full suspension of business operations. There’s still time for eligible employers to claim the credit for certain quarters by filing amended returns even though the credit ended in Q3 2021 (QA4 for startups). But the IRS says that supply chain disruptions aren’t enough to qualify for the ERC; there has to have been a partial or full suspension of business operations. #IdeaoftheDay