Employee Retention Credits
You could qualify for a tax refund of up to $26K per employee!
If your business was impacted by COVID-19 (and most were!), you likely qualify for the Employee Retention Credit. You could receive up to $26,000 per employee, completely tax free.
This is not a loan and does not have to be repaid.
What is the ERC?
A Result of the Covid-19 Pandemic
Designed to Reward Businesses
In order to keep people employed, the federal government put forth the CARES Act, which included a number of important rewards for companies who stayed open and in business. One provision of this was the Employee Retention Credit. Companies that kept their employees on payroll and working were rewarded with a tax credit.
Do You Qualify?
In order to qualify for the ERC, companies need to prove that their business was negatively impacted by the Covid-19 pandemic. They also have to report wages paid to workers during the government mandated shutdowns that occurred throughout 2020 and 2021. These wages qualify the business for the tax credit.
The initial ERC was only for certain time periods during the heaviest hit months of the pandemic. However, the American Rescue Act of 2021 extended the ERC through the end of the year, so companies could claim it for wages paid through January 1, 2022.
If a business had a reduction in gross receipts by more than 50% in 2020 as compare to 2019 or greater than 20% in 2021 as compared to 2019.
A partial or complete shutdown mandated by the Federal Government.
Time is running out!
Although the ERC was only for certain time periods, if you haven’t yet filed those tax returns, then you may still be eligible. The most important thing for you to do is seek out the assistance of a payroll or tax expert, like the ones at Charlotte Payroll, to see what you can do in order to claim the Employee Retention Credit. This can make the difference between your business succeeding and struggling, so don’t hesitate to see if you qualify.
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