You may be eligible for a $5,000 per employee tax credit!
Qualification for the Employee Retention Credit is more expansive than most businesses realize. Various changes to the law have occurred over the past few months including the expansion of the credit for 2020 to companies who had received a PPP loan and an extension of the credit first through June 30, 2021 and then again through December 31, 2021 with more liberal thresholds for qualifying.
If your business had to fully or partially close or suspend operations in 2020 or you experienced a 50% reduction in gross receipts in any quarter compared to the same quarter in 2019, you are likely eligible for the Employee Retention Tax Credit (ERTC) of up to $5,000 per employee in 2020.
As a result of the most recent legislation impacting 2021, eligible employers can now claim a refundable tax credit equal to 70% of the qualified wages they pay to employees after December 31, 2020, through December 31, 2021. Also, the gross receipts reduction test has been lowered to 20% for any quarter for 2021.
Qualified wages are limited to $10,000 per employee per calendar quarter in 2021. Thus, the maximum ERC amount available is $7,000 per employee per calendar quarter, for a total of $28,000 in 2021.
Recent guidance has also shed some light on the partial suspension of operations standard which is important for those who don’t meet the gross receipts reduction test.
To help you sort all this information and understand if your company is eligible for the tax credit, join CSA and MahoneySabol in May!
If your business had to fully or partially close or suspend operations in 2020 or you experienced a 50% reduction in gross receipts in any quarter compared to the same quarter in 2019, you are likely eligible for the Employee Retention Tax Credit (ERTC) of up to $5,000 per employee in 2020.
As a result of the most recent legislation impacting 2021, eligible employers can now claim a refundable tax credit equal to 70% of the qualified wages they pay to employees after December 31, 2020, through December 31, 2021. Also, the gross receipts reduction test has been lowered to 20% for any quarter for 2021.
Qualified wages are limited to $10,000 per employee per calendar quarter in 2021. Thus, the maximum ERC amount available is $7,000 per employee per calendar quarter, for a total of $28,000 in 2021.
Recent guidance has also shed some light on the partial suspension of operations standard which is important for those who don’t meet the gross receipts reduction test.
To help you sort all this information and understand if your company is eligible for the tax credit, join CSA and MahoneySabol in May!
Speakers |
Sponsor |