Many U.S. business owners are unaware that they can make a claim under the Employee Retention Tax Credit Scheme.
A lot of people think the scheme has closed down or that you cannot claim if you applied for PPP (Payroll Protection Plan)
Both is wrong and you may be in a position where you can claim up to $26,000 per W2 employee.
If you would like to set up a quick "no obligation" chat with a tax specialist click on the link below and you can arrange a call to see if you are entitled to make a claim. If so, they will deal with the claim on your behalf.
The Employee Retention Tax Credit or ERTC is a refund on tax paid by businesses on certain qualified W2 employees. A lot of business owners think that the scheme has now closed however you have up to 3 years after the scheme to determine if wages paid after March 2020 are eligible for the Tax Credit.
A lot of business owners also think that you cannot claim the employee retention tax credit if you have previously claimed the PPP (Payroll Protection Plan). Again this is incorrect. The legislation for this changed in March 2021 allowing you to claim for both.
Over $80billion has been allocated for US business owners for the employee retention tax credit scheme. This is available for both profit and non profit organisations.
The American Rescue Plan Act of 2021 was a nearly £2 trillion stimulus bill signed into law on March 11, 2021. It has also been called the COVID-19 Stimulus Package or American Rescue Plan.
It planned to speed up the country's recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession. The Act includes many of the measures in the CARES Act from March 2020 and in the Consolidated Appropriations Act, 2021, from December.
First of all, if you have already claimed the PPP and think you are not able to claim Employee Retention Tax Credit then STOP!
Legislation was changed allowing you to claim for both. In short, if your business was fully/partially closed or suspended or had to endure reduced hours, then you should be able to claim for your W2 employees. There is also an option even if you just had a decline in gross receipts or had to change the way your worked.
If you have between 2 and 500 W2 employees (not including Director or immediate family), then you may be entitled to claim up to $26,000 per employee. Even if you can only claim a proportion of this, it may still go a long way to helping you and your business. For those businesses with more than 100 employees there are slightly differing criteria for what you can and cannot claim however this is where the tax specialists come into play and guide you through.
Other criteria is taken into account from the...
Employee Retention Tax Credits
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