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Many employers are unaware they are eligible for special tax relief created for the covid-19 pandemic. The covid-19 Employee Retention Credit (ERC) is worth up to $26,000 per employee when a business qualifies. That means, for example, that a small business with 10 employees could qualify for up to $260,000. It sounds like a lot (and it is), but it’s also realistic.
ERC is a fully refundable tax credit. That means if you qualify, you receive a tax refund check from the U.S. Treasury.
There’s still hope if you didn’t claim your ERC tax credit during the pandemic (between March 2020 and December 2021). For a limited time, you can claim it retroactively as a tax refund by amending your 2020 and 2021 payroll tax returns.