It’s hard to imagine that a small business does not qualify for some or all of the employee retention credit (ERC).
And remember, this is a tax credit—one of the very best things that tax law has to offer. True, it’s not as valuable as some other tax credits, because you have to reduce your payroll income tax deductions for the credits, but the ERC certainly puts you money ahead.
And you can be looking at big bucks. The possible ERC is $5,000 per employee for 2020 and $28,000 per employee for 2021. That’s $33,000 per employee.
For 2020, you have two ways to qualify:
For 2021, you have three ways to qualify:
You can see by the rules that the government wants to help your small business. Take advantage.
One final note. You may not double dip. Wages you use for the ERC may not be used for the PPP, family leave credit, or similar COVID-19 programs.
*Info obtained from the Bradford Tax Institute
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