The COVID-19 pandemic impacted businesses in unprecedented ways. To help, the government introduced the ERC. If you’re an employer hoping to catch a financial break, you can learn all about the ERC with an online search right now.
The Employee Retention Credit (ERC) was introduced to help businesses retain their workforce. If you’re having difficulty keeping your employees on the payroll, the ERC might be right for you. Here’s what you need to know.
What is the Retention Credit?
The ERC is a tax credit established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The credit is equal to 70% of qualified wages paid to each employee, up to $7,000 per quarter, per employee.
This means that employers can receive up to $28,000 in credits per employee for the entire period.1 The credits can be used to offset the employer’s liability for Social Security taxes, reducing the amount of taxes that the business must pay.
Eligibility For the Retention Credit
To be eligible for the ERC, a business must meet certain criteria.2 Criteria relates to when the business was in operation, the decline in gross receipts, and the wages paid during the specified period. You can learn all the details and determine whether your business is eligible with an online search.
Employee Retention Credit Application
To apply for the employee retention credit online, employers must determine eligibility and calculate the credit amount. Only then can you file for the credit on your business’s quarterly payroll tax returns or on your annual income tax return.
Make sure to keep accurate records of your employees’ wages and your business’s gross receipts, as this information will be needed to support your claim for the retention credit. Research the process of applying online thoroughly to be sure that you don’t miss any steps!
Time is Running Out
The ERC Program is a crucial tool for businesses that are still struggling in the wake of the COVID-19 pandemic. However, time is running out to take advantage of this credit. The deadline to apply is fast approaching, with only a limited window of opportunity to claim the credit. You can find updated deadlines with an online search right now!
By providing a financial incentive for employers to retain their workforce, the ERC can help businesses save big and support their employees. Start a search to take advantage of this valuable credit before it’s too late.
