Encouraging employers to keep their workforce on the payroll, the Employee Retention Credit (ERC) offers financial relief for eligible companies that were impacted by the COVID-19 pandemic. You can learn all about the ERC with an online search right now.
Who is Eligible For the Retention Credit?
To qualify for the Employee Retention Credit (ERC), employers need to meet one of two criteria. First, if the government required the employer to partially or fully stop their operations because of COVID-19, they may be eligible. Second, if the employer experienced a big drop in total earnings, they may also qualify.1
You can find more details about the eligibility criteria and determine if your business meets the requirements by searching online.
How to Apply For the Employee Retention Credit Online
Once a business determines that it qualifies for the Employee Retention Credit (ERC), it can claim the credit on either quarterly payroll tax returns or annual income tax returns. To apply for the ERC, eligible businesses need to submit the 941-X form to the IRS.2 You can easily find information on how to do this by searching online.
It’s important to note that the 941-X form must be filed within three years from the initial return filing. This means businesses have until 2024 to participate in the program and claim the credit. Therefore, it is recommended to start the Employee Retention Credit 2023 Application process as soon as possible.
What are the Tax Benefits for Businesses?
The amount of credit you can get depends on the time period you’re claiming it for, so it’s important to do some research to see how much you can gain.3
For qualified employers, they can receive up to $26,000 per employee, which can help lower their payroll taxes.4 Even though the retention credit program expired in 2021, eligible businesses still have the chance to benefit from this useful tax credit until 2024 and sometimes even 2025.
Reap the Benefits!
If you do some research and prepare well, claiming the Employee Retention Credit (ERC) can be straightforward. It may also be helpful to work with a tax professional who can guide you and make sure you get the most out of the credit.
Don’t miss out on this opportunity to save money and support your employees. Act now and take advantage of the ERC before it’s no longer available!