The Act Now: employee retention credit 2021 Deadline is Looming
As we approach the end of 2021, businesses are faced with the looming deadline for the employee retention credit (ERC). This credit, which was introduced as part of the CARES Act in response to the COVID-19 pandemic, has provided much-needed relief to businesses struggling to retain employees during these challenging times.
The ERC is a refundable tax credit that is designed to encourage businesses to keep employees on their payroll, even during periods of economic uncertainty. It provides a tax credit of up to $7,000 per employee per quarter for wages paid between March 13, 2020, and December 31, 2021. For eligible businesses, the credit can be a valuable source of financial support as they navigate the ongoing challenges posed by the pandemic.
However, with the end of the year fast approaching, time is running out for businesses to take advantage of this credit. The deadline for claiming the ERC for 2021 is December 31, and businesses must act now to ensure they don’t miss out on this valuable opportunity.
To qualify for the ERC, businesses must meet certain eligibility criteria, including experiencing a significant decline in gross receipts or being subject to a full or partial suspension of operations due to government orders related to the pandemic. Additionally, the credit is available to businesses of all sizes, including tax-exempt organizations and government entities, with some limitations for certain types of entities.
Now is the time for businesses to review their eligibility for the ERC and take the necessary steps to claim the credit before the deadline. This may include working with a tax professional to ensure that all eligibility requirements are met and that the credit is properly claimed on their tax return.
For businesses that have already claimed the ERC for 2020, it’s important to note that the rules for 2021 have changed, and they may now be eligible for additional credits. This makes it essential for businesses to review their eligibility for the credit and assess whether they can take advantage of the ERC for the current year.
The ERC has proven to be a lifeline for many businesses during the pandemic, providing much-needed financial support to help them retain their employees and keep their doors open. As we approach the deadline for the 2021 credit, businesses must act now to ensure they don’t miss out on this valuable opportunity.
In conclusion, the employee retention credit has been a valuable source of support for businesses throughout the pandemic, and the deadline for claiming the credit for 2021 is fast approaching. Businesses must act now to review their eligibility for the credit and take the necessary steps to claim it before the end of the year. Don’t miss out on this valuable opportunity to secure financial relief for your business.