Businesses Get Back Money on Tax Return
The Employee Retention Credit (ERC) program has then been extended and expanded to offer relief to businesses impacted by the COVID-19 pandemic in 2020 and 2021. The ERC was introduced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020 and has since been extended through the end of 2025 for any return that they would have made for that period. To explain further, the program provides a tax credit to eligible businesses for W2 wages paid to employees during that time. Even if the business has already applied for and received tax return for that period the business may still be eligible to apply. The recent extensions also provide eligibility to more businesses that were previously excluded.
By extending and expanding the program, it is hoped that more businesses would be assisted in getting back on their feet after the reopening and staying afloat even after the reopening of the economy. Businesses are encouraged to take advantage of the ERC program, as it can provide significant relief during these challenging times which some businesses may be experiencing even after Covid-19.
The program offers a tax credit of up to $7,000 per employee per quarter, with a maximum credit of $28,000 per employee for the year. To be eligible for the credit, businesses must have experienced a significant decline in gross receipts or been subject to government-mandated shutdowns or reductions in business activity.
Concepts offers a range of programs and resources to help small businesses start, grow, and succeed. Unlike some other business consultation agency, they would freely consult with business to determine if they qualify for ERC tax return credit. If a business meets the criteria there is no additional payment until after the business receives money from the government.
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