The COVID-19 pandemic has caused a lot of difficulties for businesses across the world, and one of the biggest challenges they are currently facing is retaining employees. To help businesses keep their employees, the employee retention tax credit (ERTC) was introduced in the CARES Act of March 2020.
However, the ERTC was only available until the end of 2020, leaving many businesses struggling to retain their employees in the new year. To address this issue, the employee retention tax credit Reinstatement Act was introduced in February 2021.
The employee retention tax credit Reinstatement Act proposes to reinstate the ERTC and provide eligible employers with a refundable tax credit for every employee retained during the pandemic. The tax credit would be worth up to 70% of each employee‘s wages, up to a limit of $10,000 per employee per quarter.
This tax credit would significantly help businesses retain their employees during these challenging times. With the financial support provided by the ERTC, businesses would be able to continue paying their employees while they navigate the current economic downturn.
The ERTC Reinstatement Act is excellent news for businesses and employees alike. By giving businesses the financial support they need to retain employees, it ensures job security for workers and keeps the economy moving.
The Act is expected to benefit businesses of all sizes and industries, including those that were not previously eligible for the ERTC. This would help more businesses keep their employees, which, in turn, would have a positive impact on the overall economy.
Overall, the employee retention tax credit Reinstatement Act would be a significant boost for businesses struggling to retain employees during the pandemic. If the bill is passed, it could provide much-needed relief for the business community and help the economy get back on track.