As a business owner or employer, it’s essential to keep your employees happy and motivated to reduce the turnover rate. One of the ways to achieve this is by taking advantage of the employee retention tax credit (ERTC).
The ERTC is a tax credit that was introduced by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and it aims to incentivize businesses and employers to retain their employees during the economic downturn caused by the COVID-19 pandemic. The credit can be used to offset payroll taxes, and businesses can claim up to $5,000 per employee for the qualified wages paid between March 13, 2020, and December 31, 2021.
However, time is running out for eligible businesses to claim the ERTC. The deadline to submit a claim for the ERTC is December 31, 2021. As we approach the end of the year, businesses need to act fast to ensure they don’t miss out on this tax credit.
To qualify for the ERTC, businesses must meet specific eligibility criteria, including experiencing a significant decline in gross receipts or being forced to partially or fully suspend their operations due to the pandemic. Additionally, businesses must have fewer than 500 employees.
The amount of the ERTC that a business can claim depends on the number of qualified employees they have and the size of their operations. For example, small businesses with fewer than 100 employees can claim up to $5,000 per employee, while larger businesses can claim up to $28,000 per employee.
While the ERTC can provide significant financial relief to businesses affected by the pandemic, many businesses are still unaware of its existence, and even those who are aware may miss the deadline due to administrative challenges or lack of resources. Therefore, it’s essential to act fast and seek professional assistance to ensure that you don’t miss out on this financial benefit.
In summary, the ERTC can help businesses retain their employees and reduce their payroll costs during the pandemic. As we approach the end of the year, businesses need to act fast to ensure they don’t miss out on this valuable tax credit. If you’re eligible, don’t delay and seek professional help to claim the ERTC before the deadline passes.