The Employee Retention Tax Credit (ERTC) expires at the end of this year. While I’ve written previously about the program, I wanted to share two critical points with you.
First, business owners are leaving billions of dollars on the table because of misinterpretations or confusion. Eligible employers who have not taken advantage of the program can still benefit from it.
Secondly, while the program will end in December of this year, employers can still claim the credit on amended payroll tax returns as long as the statute of limitations remains open, which is three years from the filing date.
The ERC program was part of the initial COVID-19 relief bill of March 2020. But it’s been extended and expanded twice since then. As a result, it’s now much more generous and easier for businesses to qualify.
Here’s how businesses benefit:
- The ERC now provides up to $7,000 per quarter per employee for all of 2021.
Here’s how to qualify:
Initially, the ERTC was meant to help support small businesses with a decrease in revenue of at least 50% compared to the same quarter in 2019. When the Treasury Department amended the program, it added another way to qualify. Businesses impacted by government shutdown orders at the federal, state, or local level also qualify.
Here’s who’s eligible:
Everyone. It’s hard to find an industry or business that the pandemic didn’t impact and disrupt. And the savings can be pretty meaningful for all types of companies.
So far, more than 30,000 small businesses have taken advantage of the tax credit, claiming more than $1 billion in credits this year. The band news; the application process is complicated.
Miami CFO can complete the process for you from beginning to end. Let’s set a time to go over the process and collect the information I need. Use this link to schedule a meeting: https://calendly.com/miami-cfo.