Employee Retention Credit: Things To Know

The Paycheck Protection Tool garnered all the attention when the CARES Act passed in March 2020, 

However, a large number of COVID-19 response programmes have not been utilised by business owners.

Employee Retention Credit (ERC), is a refundable company tax credit established to help business owners keep staff on their payroll during closures and uncertainty caused by the epidemic.

Unlike a tax deduction, which lowers your taxable income (and taxes), a refundable tax credit is a payout that isn't limited by your company's income tax.

If your company is now qualified but did not claim the ERC for 2020 or 2021, it may still be possible to do so. Let's take a look at what it takes to make a claim.

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Did your business ceased operations owing to COVID-19 restrictions banning commerce, travel, or group meetings? If so it may be eligible

The ERC could help your firm recover if it slowed during the pandemic. Even businesses with one or two employees in 2020 or 2021 could win thousands.

Claim your credit

Before claiming the ERC, you should speak with a tax professional, especially since your claim must be lodged after the 2021 deadline.

Businesses that filed their taxes in 2020 or 2021 may be required to file updated returns.