To help businesses during the difficult times of the COVID-19 pandemic, the government introduced the Employee Retention Credit (ERC). Start a search today to learn how businesses can take advantage of this valuable tax credit.
The pandemic created significant economic challenges for businesses, making it difficult to keep employees on the payroll. The ERC is a tax credit established as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
What is the Employee Retention Credit (ERC)?
The ERCs purpose is to help businesses retain their employees during the COVID-19 pandemic by providing a financial incentive. For each eligible employee, the tax credit amounts to 70% of their qualified wages, with a cap of $7,000 per employee per quarter. Consequently, a business can potentially benefit from a maximum of $28,000 in credits per employee throughout the entire applicable period.1
In order to qualify for the ERC, businesses must adhere to specific guidelines. Some of the guidelines relate to operational dates, revenue, and employee retention, but you can find out the specifics with some online research.
Maximizing the ERC
To maximize the benefits of the Employee Retention Credit Program, it’s important for businesses to understand how to calculate their eligibility. Additionally, businesses should have kept and continue to keep accurate records of their employees’ wages and their business’ gross receipts. This information will be needed to support a claim for the ERC. Start a search to determine how you can maximize the credit for you business or find a local tax professional who can help.
There’s Still Time
Despite the ERC program’s official conclusion in 2021, eligible businesses can still capitalize on this crucial financial lifeline. Thanks to an extended deadline, businesses have the opportunity to retroactively claim the credit until 2024, and under specific circumstances, even until 2025.2 This prolonged period allows companies to recover some of the financial hardships they faced during the most demanding phases of the pandemic.
Act Quickly to Unlock These Savings
The ERC is a crucial tool for businesses struggling to retain their employees during the COVID-19 pandemic. With time running out, it’s important for businesses to act quickly and take advantage of this valuable credit before it’s too late.
Don’t let this opportunity slip through your fingers. Start your search to learn more and apply for the Employee Retention Credit right now!