To help businesses weather the storm of the COVID pandemic, the US government introduced the Employee Retention Credit (ERC) – a tax credit designed to incentivize employers to retain their employees during difficult economic times. Find out how your business can take advantage of this lucrative credit before it’s too late.
What is the Employee Retention Credit?
The ERC is like a special tax credit made to help businesses keep their workers during the time of COVID-19. It’s part of a big help plan called the CARES Act and any business, no matter how big or small, can use it.1
If a business can use this deal, they could get a lot of money back. But, the amount changes based on when they claim it. 2 It’s a good idea to look this up on the internet to see how much it can help your business.
Eligibility for the ERC
To use the ERC deal, a business needs to meet certain rules, and these rules can change based on when you’re asking for the money back. 3 For instance, for money paid to workers between March 13, 2020 and December 31, 2020, the business should have had to suspend operations due to COVID-19, or they should have made a lot less money compared to the same time the year before.
But the rules are different for money paid to workers in 2021. Good news is, you can find out about these rules by looking it up on the internet.
Apply For Employee Retention Credit Online
After checking that your business can use the ERC deal, you can ask for the money back on your business’s tax forms. If your business can use the ERC, you can apply for it by filling out a form called 941-X and sending it to the IRS.
Remember, you have to send the 941-X form within three years after you first filed your taxes. So, businesses have until the year 2024 to use this deal and ask for the money back. That’s why it’s smart to start working on your Employee Retention Credit 2023 Application right now.
Learn More About the Employee Retention Credit Today
The process of claiming the ERC is straightforward, as long as you do your research. Working with a tax professional can also help ensure that you receive the maximum benefits available to them. Take advantage of the ERC today!