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Does Working Remotely Qualify for ERTC?

Jared DeValk • Sep 02, 2023

Does Working Remotely Qualify for ERTC?

Yes, working remotely can qualify for the Employee Retention Tax Credit (ERTC) if the employer meets the eligibility criteria[3][4][6].


The ERTC is a financial incentive for eligible employers to retain their employees during challenging economic times, such as the COVID-19 pandemic[1][2][3]. 


Here are some facts about ERTC eligibility and working remotely:

  • Eligibility Criteria: To qualify for the ERTC, employers must have experienced a significant decline in gross receipts or a full or partial suspension of operations due to government orders related to COVID-19[2][3][4][5][6].
  • Qualified Wages: The ERTC is based on qualified wages paid to employees during the eligible period. For employers with more than 500 full-time employees, qualified wages are limited to wages paid to employees who are not providing services due to a full or partial suspension of operations or a significant decline in gross receipts[1][3][5][6].
  • Remote Work: If an employee is working remotely due to a full or partial suspension of operations or a significant decline in gross receipts, their wages may qualify for the ERTC[3][4][6].


It's important to note that the ERTC has undergone updates and changes since its introduction. Employers should stay updated with the latest IRS guidance and consult with tax professionals to ensure compliance with eligibility requirements and maximize the benefits of the credit[
1][4][5][6].



In conclusion, working remotely can qualify for the Employee Retention Tax Credit (ERTC) if the employer meets the eligibility criteria related to gross receipts, suspension of operations, employer size, and qualified wages. 


By understanding the eligibility requirements and staying informed about IRS guidelines, eligible employers can use this financial incentive to retain their employees during challenging economic times.


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