• The ERTC was established during the COVID pandemic and incentivized employers to keep employees on their payroll by providing a refundable credit.
• The credit provides up to 50% of up to $10,000 in wages paid for 2020 and up to 70% of up to $10,000 in wages paid per quarter for 2021.
• Qualifying organizations include most employers after the enactment of the American Rescue Plan Act, hospitals, colleges, and universities.
click here to see if you may qualify, and click here to watch PuzzleHR President/COO Chris Timol and VP of Customer Success Jonathan Boehmer discuss the importance of the ERTC!
The deadline for tax season is looming over business owners countrywide. As the date approaches, employers should be aware of their eligibility for the Employee Retention Tax Credit and the benefits it could have for their organization.
ERTC Fast Facts
• The ERTC was established during the COVID pandemic under the CARES Act.
• It incentivizes employers to keep employees on their payroll, despite reduced business, by providing a refundable credit.
• The credit provides up to 50% of up to $10,000 (up to $5,000) in wages paid by an eligible business for 2020 and up to 70% of up to $10,000 (up to $7,000) per quarter for 2021, excluding the fourth quarter.
• Businesses can file an amended tax return and retroactively claim the ERTC until 2024 or 2025 in special cases.
• Amended returns for 2020 quarters 2, 3, and 4 must be filed by April 15, 2024.
• Amended returns for all 2021 quarters must be filed by April 15, 2025.
Do You Qualify?
Qualifying organizations include hospitals, colleges, universities, and most employers after the enactment of the American Rescue Plan Act. Organizations of all sizes are eligible, including those that are tax-exempt. The only exceptions are state and local governments and small businesses that take small business loans. Whether or not you qualify, and how much you qualify for, depends on how much COVID impacted your organization.
Click here for a quick assessment of whether your business qualifies!
Did You Know?
Did you know that PuzzleHR has helped dozens of customers file for over $20,000,000 in Employee Retention Tax Credits? Find out if we can help you too! And tune in here to see Puzzle President/COO Chris Timol and VP of Client Success Jonathan Boehmer as they discuss the ERTC and what it means for your business.
Click here to speak to one of our specialists and find out more