Find Out if Your Business Qualifies for the Employee Retention Tax Credit, Up to $26,000 Per Employee
US based businesses that suffered revenue losses or experienced at least a partial suspension of operations due to COVID-19 government orders could qualify for up to $26,000 per employee.
Who Qualifies?
There are two ways for an employer to qualify for the ERC:
1. Your business experienced a requisite decline in revenue during 2020 or 2021 compared to the comparable quarter in 2019
2. Your business was at least partially suspended due to COVID related government orders.
What Is the Deadline?
The Employee Retention Credit sunset date was moved from 12/31/21 to 9/30/2021; however, you can still file retroactively as long as you meet the eligibility requirements.
Is This Considered Taxable Income?
The ERC is not considered taxable income for employees. This means that employees will not have to pay any additional taxes on wages that are covered by the ERC. For employers, the ERC is treated as a Business Expense, which can be used to offset taxes owed. The ERC is a valuable tax relief measure for employers and employees alike, and it can help to retain key personnel during these difficult times.