The past two tax years have thrown more than a few curve balls at business owners. To assist businesses, the Federal Government passed the Cares Act. Part of this act includes a tax credit referred to as the Employee Retention (Tax) Credit- or ERC/ERTC.
The ERTC is fairly complex. Let’s face it, you’re focused on guiding your team thru a pandemic and running your business. You don’t have the hours it would take to weed thru pages of congressional jargon.
Here is what you need to know.
What exactly IS the ERTC?
Think of it as a silver lining in the dark cloud of the pandemic. The ERTC rewards business owners that kept their employees on payroll during COVID shutdowns for 2020 and part of 2021.
These credits recognize your burden and can help repair the damage to your bottom line. Here are some of the benefits your business could qualify for:
- A refundable tax credit of up to $5,000/per employee for the year 2020.
- For 2021, these incentives are available for the time periods of Q1-Q3 up to $7,000 per employee.
- COVID sick time provision can provide up to either $2,000 or $5,100 per employee maximum in addition to ERTC.
How do I know if I qualify?
The worst mistake is assuming you don’t qualify! Most businesses are not aware that there is more than one way to qualify for the credits. If you are a business who had at least 1 employee (and up to 500) during Q1-Q3 of 2021, you could be leaving money on the table. It’s actually possible to receive credits in excess of what you received from the PPP program.
To begin the process and find out if your business qualifies, call Harper and Company CPAs Plus at (614) 456-7222. We’ll assess your qualifications, maximize your benefits, and create an audit trail. To dates, we’ve filed for millions in ERTC funds. Call us today to get started!