Get started by talking to one of our specialty tax experts today!
Get started by talking to one of our
specialty tax experts today!
The Employee Retention Tax Credit (ERTC) is a refundable tax credit that rewards businesses for keeping employees on payroll during the pandemic. It extended until the end of the third quarter of 2021, September 30, 2021. (You can only receive the ERTC in the fourth quarter of 2021 if you qualify as a “recovery startup business” under Section 3134(c)(5) of the IRS Code.)
Eligible employers can claim the credit against the employer share of Social Security tax equal to 70% of the qualified wages they paid to employees after December 31, 2020, through September 30, 2021. Because qualified wages are limited to $10,000 per employee per calendar quarter in 2021, the maximum ERC amount available is $7,000 per employee per calendar quarter, for a total of $21,000 in 2021.
Effective January 1, 2021, employers are eligible if they operated a trade or business during January 1, 2021, through September 30, 2021, and experienced either:
If your business didn’t exist in 2019, you can use the corresponding quarter in 2020 to measure the decline in your gross receipts. For the first three calendar quarters in 2021, you can measure the decline in your gross receipts using the immediately preceding calendar quarter (i.e., the fourth calendar quarter of 2020 and first calendar quarter of 2021, respectively) compared to the same calendar quarter in 2019.
In addition, effective January 1, 2021, the definition of qualified wages was changed to provide:
Retroactive to the March 27, 2020, enactment of the CARES Act, if you received Paycheck Protection Program (PPP) loans, you can claim the ERC for qualified wages that are not treated as payroll costs in obtaining forgiveness of the PPP loan.
For more information, see COVID-19-Related Employee Retention Credits: How to Claim the Employee Retention Credit FAQs
It’s never too late to apply! As the nation’s leading specialty tax firm, Engineered Tax Services has had considerable experience both this year and last in helping clients claim the Employee Retention Credit. Let us guide you through the bureaucratic labyrinth of applying for the Credit, so you can enjoy the full economic benefits of this timely tax incentive!
Are you looking for a comprehensive guide to the tax deductions, tax credits, and other wealth-generating tools available to real estate investors and owners?
Thanks to the Consolidated Appropriations Act, 2021, eligible employers who retained employees during the COVID-19 pandemic can take advantage of the employee retention credit (ERC), a provision …
Waste is a terrible thing. And it’s a serious issue when too many people in the building and construction industry don’t realize that when they …
Summary: In today’s podcast, Julio Gonzalez from Engineered Tax Services discusses some small business tax credits, tips, and tricks regarding tax credits that all small …
© 2022 Engineered Tax Services, Inc | Privacy Policy | Additional Offices in Principle Cities Nationally