Damiens Law Now Helping People Determine if They Qualify For The ERTC
Are you a small or mid-sized business looking for ways to reduce your tax bill? If so, you may be eligible for the Employer Retention Tax Credit. What is the ERTC, and How Does it Work? The Emergency Retention Tax Credit is a refundable tax credit available to eligible employers that helps businesses keep their workers on the payroll.
The credit is equal to 50% of qualifying wages paid by an eligible employer to employees during the COVID-19 pandemic, up to $10,000 in wages paid per employee.
You can carry the credit back or forward to other tax years if you don't have enough tax liability in the year you incur the expense.
What Else Should You Know About the ERTC? - Wages used to calculate the credit must be paid to employees after March 12, 2020, and before January 1, 2021.
The credit is not available for wages paid to related parties or owners of the business.
The credit is refundable, so if it exceeds your tax liability, you will receive a refund for the difference. Damiens Law Stresses the Importance Of Knowing if Your Business Qualifies. The ERTC can be a valuable credit for businesses that have been affected by the Covid-19 pandemic.
It's important to make sure that your business qualifies for the credit before claiming it. The process can be tedious and if the paperwork is not properly filled out, it could end up costing the company more money in penalties and fees - on top of paying back the tax credit.
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