Things You Need To Know About The Employee Retention Credit

 


The CARES (Coronavirus Aid, Relief, and Economic Security) act imbibes a business relief provision known as the employee retention credit. This credit is a refundable payroll tax credit for "qualified wages" paid to retain full-time employees from March 13, 2020, to December 31, 2020. The core aim of the ERC is to encourage employers to keep their employees on the payroll even if they are not working during the covid period. 

The coronavirus has hit the business owners and the employees. In such a situation, the CARES act is a ray of hope. However, it is an excellent step in this direction; several queries and doubts are associated with it. Such as, what business owners can apply for the ERC? What are its primary benefits? Which businesses are eligible for this ? and so on. 

Source : CPA Due Diligence


#EmployeeRetentionCredit

Comments

Post a Comment

Popular posts from this blog

Employee Retention Tax: How To Prepare Your Business For ERTC Funds?

Image
At the end of 2021, the employee retention tax credit is set to expire. However, this does not mean all the small businesses are out of time to take advantage of the credit. The precise details of the ERTC have changed since it was created by the Coronavirus Aid Relief and Economic Security (CARES) Act, which came into effect in March 2020. Following covid waves, the ERTC credit got multiple extensions, and there is a suspicion that the ERTC won't be in effect after December 31, 2021. The recent updates regarding ERTC have made it easy for businesses to attain benefits from it. Between the Consolidated Appropriations Act and American Rescue Plan, the IRS has uncomplicated its criteria for which businesses qualify and increase how much businesses affected by covid-19 can claim. This blog presents a breakdown of what has changed for the ERTC and how businesses can claim tax credit before it's too late.  Source : CPA Due Diligence #ERTCTaxCredit #ERTCCredit #HowToApplyForERTC  #H
Read more

Employee Retention Tax Credit: Explained By The IRS Guide

Image
  Small businesses constitute around 99.9% in the US. Almost half of the private workforce are these business employees of the small business. Unfortunately, this sector got hit during the pandemic, which has caused a drastic impact on the employers and the employees. It started way back in 2019, and many continue to struggle because of the coronavirus. To counter this and soothe the employers' dilemma, then US President Donald Trump made the CARES Act into a fully-fledged law on March 27, 2020, and this CARES act includes the employee retention tax credit IRS guidance. The Employee Retention Credit (ERC) is an economic relief initiated to help businesses throughout the pandemic. As the name suggests, it's a refundable tax credit against certain employment taxes to help keep employees on the payroll. Source : CPA Due Diligence #EmployeeRetentionTaxCreditUpdates #EmployeeRetentionTaxCreditIRSGuidance
Read more