The last few years have been rough, but there are some powerful new incentives that have been specifically developed for businesses that have been affected by Covid. Congress has officially authorized $1.9 trillion in stimulus relief in 2021 to aid businesses and consumers.
Most likely, you’re probably not familiar with the Employee Retention Credit (or ERC for short). This powerful tax benefit can potentially eliminate your business’ payroll tax and bring some serious money back to your business in the form of a cash refund – even if you received a PPP loan in 2020 or 2021! For most businesses, this is one of the largest federal incentives available, providing thousands of dollars per employee and the process is simple.
So, how do you know if you’re eligible for the Employee Retention Credit?
- First, you had a decrease in revenue due to Covid 20% in 2021 and/or 50% in 2020.
- Second, you had a full or partial shutdown of your business for any period of time during Covid
- Third, you qualified for the payment protection plan (PPP).
If ANY of these three apply to your business, you may be eligible for the ERC incentives. Most importantly, essential and non-essential businesses can claim this credit by amending their 2020 Quarterly Form(s) 941, even if they took part in the Paycheck Protection Program (PPP) or other COVID relief.
Taking advantage of this benefit doesn’t have to be overwhelming. If you hare unsure if or how you may qualify, we have a simple questionnaire to determine your eligibility. We can help set your business up to take full advantage of the Employee Retention Credit. Contact us today and we’ll get the ball rolling on the process of getting you and your business some much needed relief.