The Employee Retention Tax Credit (ERTC) is a valuable tool that can help businesses who were impacted by the pandemic claim a refundable credit on wages paid to their employees. This credit is designed to support employers who retained their workforce during government-imposed shutdowns, capacity restrictions, or other disruptions caused by COVID-19.
What is the Employee Retention Tax Credit?
The ERTC is a federal tax credit that was created to incentivize businesses to retain employees during the COVID-19 pandemic. For 2020, eligible employers could receive up to $5,000 per employee, and for 2021, up to $7,000 per employee per quarter. This means you could potentially receive thousands of dollars in tax credits, directly reducing your tax bill.
Are You Eligible for the Employee Retention Tax Credit?
Eligibility for the ERTC depends on several factors, including whether your business was fully or partially suspended due to a government mandate, experienced a decline in gross receipts, or had to close due to a COVID-related issue. Even if you’ve received other relief, like the Paycheck Protection Program (PPP) or Restaurant Revitalization Fund (RRF), you may still qualify for the ERTC!
What Does This Mean for Your Business?
If your business has been impacted by the pandemic, the ERTC could offer a significant opportunity to reduce your financial burden. At Fidelis CPAs, we simplify the process by helping you understand whether you qualify and ensuring you receive the maximum credit. We offer flat-rate fees per employee and ensure you get the full benefit without paying high third-party fees.
Key Points of the ERTC:
- 2020: Eligible businesses can receive 50% of wages paid up to $10,000 per employee for the year.
- 2021: The credit increases to 70% of wages paid up to $10,000 per employee, per quarter.
- PPP and RRF Recipients: Even if you’ve received other aid, you may still qualify for the ERTC.
Don’t miss out on this valuable credit—reach out to Fidelis CPAs today to find out how we can help your business claim the Employee Retention Tax Credit.