During the COVID-19 pandemic, small businesses were able to claim the refundable tax benefit known as the Employee Retention Credit. It offered some relief to struggling companies that continued to pay staff despite being forced to halt operations or have their gross receipts impacted by government pandemic restrictions from March 13, 2020, to December 31, 2021. Eligible taxpayers may claim the ERC on an original or revised employment tax return for the period between those dates.
Employers are required to complete Form 941, Schedule R to claim the Employee Retention Credit. Each employee will receive a credit equal to 50% of the qualifying salary they received through the end of 2021. Employers must have either seen a decline in gross receipts or a disruption in business operations to qualify for the ERC credit. Employers also need to have maintained their staff at pre-pandemic levels.
How much is the Employee Retention Credit?
The credit is equal to 50% of the eligible salaries that the employer pays to its staff. The maximum credit that a company may earn is $5,000 per employee and the maximum amount of eligible wages per employee is $10,000. Additionally, the employer had to keep the workers on for the applicable period and give them at least $600 in qualifying wages. The employee retention credit is applicable for wage payments made between March 13,2020, and December 31, 2020.
How to file for Employee Retention Credit?
After you fill out an application to get a no-cost estimate from us we help you:
- Gather documentation
A member of our team will get in touch with you to assist with document collection.
- Calculate Tax Credits
Our specialists will determine how much credit you are qualified for from the IRS.
- Return Preparation
Our accounting department will then assist you in preparing and filing the 941-X Amended payroll returns.
- Get Paid
After processing the credit, the IRS will send you a check.
Why should you utilize our specialists?
Due to our considerable payroll expertise, we can focus primarily on understanding and utilizing the ERC program. According to our experience, few people can fully take advantage of this significant benefit for your business because of its complexity (the ERC tax code is about 200 pages long) and the time investment needed to understand it. For our business owners, we want the procedure to go as fast and efficiently as possible.