As an employer, you understand the importance of retaining good employees for the success of your business. One way to help achieve this goal is by taking advantage of the employee retention tax credit (ERTC) program.
The ERTC program was introduced as a part of the CARES Act in 2020 as a way to help businesses keep their employees during the COVID-19 pandemic. However, the program has been extended through the end of 2021 and expanded to include more businesses.
Here are some reasons why every employer should know about the ERTC program:
1. It can help you save money on payroll taxes.
The ERTC program allows eligible employers to claim a tax credit of up to $28,000 per employee for 2021. This credit can be used to offset payroll taxes, including Social Security and Medicare taxes.
2. It can help you retain employees during challenging times.
The ERTC program was initially introduced to help businesses retain employees during the pandemic. However, it can also be useful during other challenging times, such as economic downturns or natural disasters.
By using the ERTC program to offset payroll costs, employers can better afford to keep their employees during these uncertain times.
3. It can benefit businesses of all sizes.
Initially, the ERTC program was only available to businesses with less than 500 employees. However, the program has been expanded to include businesses with up to 5000 employees for the second half of 2021.
This expansion means that more businesses, including larger corporations, can take advantage of the ERTC program.
4. It can be combined with other government programs.
The ERTC program can be combined with other government programs, such as the Paycheck Protection Program (PPP) or the Economic Injury Disaster Loan (EIDL) program. This means that eligible businesses can take advantage of multiple programs to help offset their payroll costs.
In conclusion, the employee retention tax credit program is a valuable resource for employers looking to retain good employees and save money on payroll taxes. With the program’s extension and expansion in 2021, more businesses than ever can benefit from this opportunity. Make sure to speak with a tax professional to determine if your business is eligible for the ERTC program.