Calling all small businesses affected by COVID-related shutdowns and disruptions – Did you know you may be eligible for 2020 – 2021 employee retention tax credits of up to $26,000 per employee?
For example, if you have five employees at an average credit of $26,000 each, your credit would be $130,000 for the year. It isn’t a loan you have to pay back and if you have W-2 employees, you are likely eligible!
The Biden-Harris Administration has made these benefits available NOW – these credits can hit your bottom line cash flow as soon as your next quarterly filing.
How do you know if your business is eligible?
- Your business has fewer than 500 employees
- Your business was at least partly closed due to a government shutdown during any part of a quarter
- OR, your business’ revenue declined by 20% or more compared to either (a) the same quarter in 2019, or (b) the immediately preceding quarter in 2020 or 2021
- AND, you kept employees on the payroll
Here’s how it works:
In 2020, each employee kept on the payroll earned the business up to $5,000 for the year. For 2021, the employee retention credit (ERC) is a quarterly tax credit against the employer’s share of payroll taxes. The tax credit is 70% of the first $10,000 in wages per employee, for each quarter of 2021. Quarter four is not applicable. This means this credit is worth up to $7,000 for the first three quarters in 2021 and up to $26,000 total, for each employee.
According to the U.S Treasury, businesses that received PPP loans in 2020 or 2021 can still claim the ERC. The ERC is also available for the last two quarters of 2021 for certain small businesses that opened after February 15, 2020. If these businesses have less than $1 million in annual gross receipts, they may claim ERCs of up to $50,000 per quarter, even if the businesses have not been shut down or experienced declines in revenue.
So what are you waiting for? Don’t sit on free money! The opportunity is time sensitive and the funds will be exhausted as more people hear about this. It takes less than five minutes to find out if you qualify with the ERC Specialists – just click the link below!