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What Is The Employee Retention Tax Credit (ERTC)?

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Employee Retention Tax Credit (ERTC)

Amidst the pandemic, many businesses have been struggling to stay afloat. To help these companies, the U.S. Government has implemented various tax credits and incentives to help stimulate the economy and aid businesses in their efforts to retain employees. One such tax credit is known as the Employee Retention Tax Credit (ERTC). In this blog post, you will learn what ERTC is, how it works, and ERC benefits

What Is Employee Retention Tax Credit (ERTC)?

The ERTC is a tax credit that helps businesses keep their employees during the COVID-19 pandemic. The credit is available to employers who are experiencing financial hardship due to the pandemic. To be eligible, businesses must have experienced a decrease in revenue of 20% or more in any quarter of 2020 when setting 2019’s same quarter side by side. The credit is worth up to $5,000 per employee per year. Businesses can claim the credit for wages given from March 13, 2020, to December 31, 2020.

What Are The ERC Benefits?

There are many benefits of the Employee Retention Tax Credit (ERTC). Here are a few of them. 

  • The credit is a refundable tax credit for businesses that retain employees during the COVID-19 pandemic. Further, the credit is available to eligible employers who pay qualifying wages to their employees.

 

  • The ERTC is a valuable tool for businesses struggling to keep their employees during these difficult times. The credit can help enterprises to offset the costs of retaining their workforce and keeping them employed.

 

  • The ERTC is available to eligible employers who pay qualifying wages to their employees. Qualifying wages are those that are paid for work performed by an employee during the period commencing on March 13, 2020, and ending on December 31, 2020. To be eligible for the credit, an employer must have experienced a decrease in gross receipts of at least 50% compared to the same quarter in the prior year.

 

  • Employers can claim the credit for each employee they retain, up to $5,000 per employee. The credit is available for both full-time and part-time employees. Employers can receive the credit as a payroll tax offset or a refundable tax credit when they file their annual income tax returns.

Businesses that struggle to retain employees during these difficult times can benefit from the ERTC. Employers may be able to offset the costs of keeping their workforce employed by taking advantage of the credit.

The Best ERC Contacts

After knowing the ERC benefits, you may want to file the claim. However, it takes work to get credit. Not because the government will create the fuss but because the documents and filing can take time. Moreover, the number of forms you need to fill out can confuse you. This is where the best ERC contacts will pique your interest. And when talking about the Employee Retention Credit contacts, we can’t miss the name Claimer Ccredit. They are the best in town. No matter which corner you look at, you will always find them helping people in claiming credit without breaking the bank. So, why wait? Join hands with them and get the assistance you need. 

 

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