ERC Consulting
Employee Retention Credit Offers Savings Opportunity
What is the Employee Retention Credit (ERC)?
The Employee Retention Tax Credit (ERTC) is a federal tax incentive program designed to reward eligible companies for retaining employees during the pandemic. It helps eligible businesses retain employees by offering a percentage-based credit on qualified wages paid to employees. The credit is refundable and can be claimed on quarterly employment tax returns. Eligibility criteria and credit amounts have evolved with changing legislation but generally, there are different rules governing the credit in 2020 and 2021.
What Changed in 2021?
The COVID-19 relief legislation has not only extended the ERC but has made several changes to expand eligibility, increase savings, and even add a retroactive provision for PPP loan recipients. The ERC has been extended through December 31, 2021, increasing the per-employee maximum, per year to $21,000 and expanding eligibility to include those with only a 20% reduction in gross receipts. Finally, small businesses can receive a credit advance against future payroll taxes.
Let’s Get Started
Unlike other tax credits, it is not necessary to wait until the end to save. The time to act is NOW! The team at McKonly & Asbury stands ready to review your business, and determine eligibility, and the amount of potential savings. Through our ERC study, we will make the necessary calculations, compile the required documentation, prepare all filings, and submit them to the IRS. Since you can claim the credit at any time, there is no reason to wait to get started.
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