The Employee Retention Tax Credit (ERTC) is a valuable tax incentive for businesses that have been impacted by the COVID-19 pandemic. It is designed to help employers keep their employees on payroll, even during difficult times.
The ERTC provides a credit of up to $5,000 per employee, per year, for businesses that have experienced a significant decline in gross receipts. To qualify for the credit, a business must have a decline in gross receipts of more than 20% compared to the same quarter in the previous year.
The credit can be applied against the employer’s portion of Social Security taxes and is available for wages paid from March 13, 2020 through December 31, 2020. In addition, eligible employers can also claim the credit against certain employment taxes on wages paid after December 31, 2020 and before July 1, 2021.
To qualify for the ERTC, employers must meet certain criteria. The business must have been fully or partially suspended by government order or have experienced a significant decline in gross receipts. A significant decline in gross receipts is defined as a decline of at least 50% in a quarter when compared to the same quarter in the prior year. Additionally, the employer must have retained at least 90% of its employees during the period of economic hardship.
The ERTC is a great way for businesses to save money on their taxes and keep their employees on payroll. If your business has been impacted by the pandemic, be sure to take advantage of this valuable tax credit.
While the ERTC was created in the CARES act along with the PPP Loans. This is not a loan, there is no repayment. There are no restrictions on what recipients of the credit must use the funds.
– The ERTC In brief:
Funded by the CARES Act
Originally created to encourage businesses to keep employees on the payroll as they navigate the unprecedented effects of COVID-19.
– No Restrictions – No Repayment
this is not a loan.
– Up to $26,000 Per w-2 Employee
Full Time and Part Time Employees Qualify.
– Free, No Obligation Pre-Qualification
Let our expert team determine if you qualify for a sizable rebate.
By answering a few, simple, non-invasive questions, our team of ERTC experts can determine if you likely qualify for a no-strings-attached tax credit.
There is no cost or obligation to be pre-qualified.
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