The Employee Retention Credit (ERC) was introduced as a part of the CARES Act to help employers keep their workers on the payroll during the COVID-19 pandemic. The ERC has been extended several times, so there’s still time to claim it! Start a search today to find out how to apply.
What Is the Employee Retention Credit?
The Employee Retention Credit provides eligible employers with a refundable tax credit that can help offset their Social Security tax liability.1
The ERC Program has been extended several times since its introduction in March 2020. The most recent extension was signed into law in December 2021 and allows eligible employers to apply for the credit in 2023. However, there are some changes to the credit, so it’s important to do your research.
Eligibility for the Employee Retention Credit
To be eligible for the ERC, employers must meet one of two criteria. First, the employer must have had to fully or partially suspend operations due to COVID-19 due to governmental authority. Or, the employer must have experienced a significant decline in gross receipts.2 Fortunately, you can learn more about the eligibility criteria and find out if your business qualifies by searching online.
Employee Retention Credit 2023 Application
To apply for the employee retention credit online, eligible employers must report it on their federal employment tax returns, typically using Form 941-X.3 It’s important to understand the process of claiming the ERC, as it can be a valuable tool for reducing tax liability and providing financial relief. And time is running out. Don’t wait! Start your application now.
Learn More About the Employee Retention Credit Today
Claiming the ERC can be a simple process if you do your homework. Using a tax professional can also help you along the way and ensure you’re receiving the maximum benefits.
Don’t overlook this chance to save significantly and provide support to your employees. Take advantage of the ERC today, before it’s too late!