While it may seem like ages ago now, the CARES act was established during the pandemic to encourage employers to keep staff on the payroll and provided tax credit incentives to do so. While the number of employed staff, their qualified wages and the types of eligible businesses who could apply for this credit has changed a bit over the past two years, the Employee Retention Tax Credit (ERTC) still remains a very important benefit to employers in 2022.
What is the Employee Retention Tax Credit?
According to the IRS website:
The Employee Retention Credit is a fully refundable tax credit for employers equal to 50 percent of qualified wages (including allocable qualified health plan expenses) that Eligible Employers pay their employees.
Does my business still qualify for the ERTC?
According to Christopher Mallery, CEO & Co-Founder of Top 2 Bottom Business Solutions:
If you have a handful of employees, your sales were negatively impacted during 2020 or 2021, or there were government orders to close/change your business then you should at least check to see if you are eligible for this tax credit before it is too late.
What is the deadline for retroactively filing for the ERTC?
If your business qualified for the ERTC during 2020 or 2021, the IRS generally gives you three years from the date you originally filed the original return or two years from the date you paid taxes to amend your federal employment tax return.
What’s the best next step to take to learn more?
Use our T2B Contact form to send details and our team will put you in touch with ERTC experts to assist!