Congress created the Covid-19 Employee Retention Credit in 2020 under the CARES Act. During the following two years, Congress CHANGED the tax credit repeatedly -- expanding and enhancing it to help struggling employers as the pandemic progressed.
The IRS has published hundreds of pages outlining the rules with explanations, examples, and procedures.
Today's result is a REFUNDABLE tax benefit that's difficult to wrap your arms around, yet far too valuable to just let go.
What's it worth?
An eligible business with just ten employees could earn up to $70,000 per quarter and up to $210,000 based on 2021 wages alone. Imagine taking that check to the bank! Our clients do.
How much ERC could an eligible business earn with 50 or 100 employees in 2020 or 2021? It's potentially in the millions. I know that seems fantastic -- but it is a fact.
How does it work?
There is more than one way to qualify. And the analysis and computations take great care. The tax refunds are then claimed by filing an amendment to your company's 2020 and/ or 2021 payroll tax returns.
Qualifying can come from a variety of details like:
And keep in mind, your business can qualify even if your business income increased during the pandemic.