Most people know that a person who owns 50% or more of the business doesn't qualify for the refundable payroll tax credits, called ERCs. However, that is not always the case.
Thanks to a nuance in the law, one rule would allow an owner's wages to qualify for the ERC refund. For example, suppose a majority owner of a corporation has no brother, sister, or half-sibling and has no living ancestors or children. In that rare case, the wages paid to a majority owner and the owner's spouse will qualify for the Employee Retention Credit.
Yes, you heard this correctly. If a majority owner has no family, their wages are eligible for the ERC credit. This is a unique situation, but it does happen.
Does this rare situation apply to you? If so, give us a call or click below to talk with one of our ERC advisors.