The ERC (Employee Retention Credit) was heavily utilized by businesses during the pandemic. Start a search online now to find out how your business can receive up to $26K per employee with this tax credit.
You may be wondering: Didn’t the ERC expire in 2021? Yes, it did! However, if you haven’t claimed it, there’s still time to do so retroactively. Don’t let this incredible financial support pass you by. Explore the ERC while it’s still available!
What Is The Retention Credit?
The retention credit is a form of financial support designed to help businesses retain their employees during difficult economic times. 1 It’s essentially a tax credit that can be used to offset the cost of employee wages and benefits.
The retention credit works by providing businesses with a tax credit that can be used to offset the cost of employee wages and benefits. The credit is calculated based on a percentage of an employee’s total compensation, and it can be used to offset the employer’s portion of Social Security taxes.
How The Employee Retention Credit Works
Employers can claim credit via the following ERC programs:
- The 2020 ERC Program offered a tax credit of 50% of up to $10,000 in wages paid per employee from March 12, 2020 to December 31, 2020, which amounts to a maximum credit of $5,000 per employee.
- The 2021 ERC Program further increased the credit to 70% of up to $10,000 in wages paid per employee per quarter, for the first three quarters of 2021, resulting in a maximum credit of $21,000 per employee. 2
This generous credit – which can lead up to $26,000 – can significantly help businesses maintain their operations and workforce. Plus, it’s still available to claim!
Benefits of a Retention Credit
The retention credit has a number of advantages. One of the main benefits is that it provides a way for businesses to keep their employees on the payroll, even when revenue streams are disrupted. Additionally, retention credit can help businesses to reduce their overall tax liability, since the credit can be used to offset the employer’s portion of Social Security taxes.
Significant Economic Support Is Here
If you’re eligible, and wondering how to apply for the Employee Retention Credit, you can claim it on your federal employment tax return. With the ability to receive up to $26,000 per employee, this tax credit can provide significant support for companies that are struggling to maintain their operations and workforce. By taking advantage of this incredible opportunity, businesses can help to ensure their long-term success and stability.
