8/27/2021 - By Jeanne Profita
The Employee Retention Credit (ERC) was created by the Federal Government to encourage small businesses to keep employees on their payroll during the COVID-19 pandemic. The credit includes qualified wages and employer health plan expenses paid to (and on behalf of) employees. Since the enactment of the ERC in 2020, it has been expanded and extended through December 31, 2021.
To determine if your company is eligible, you must qualify under one of the following provisions:
The credit is calculated based on the year your business qualifies.
Please note, the bipartisan infrastructure bill as currently proposed would generally end the ERC early, making wages paid in the fourth quarter of 2021 ineligible for the credit.
If you have any questions or think you may qualify for this credit, please contact our Tax team.
For more details on this IRS guidance, read our recent blog!
About the Author | Jeanne Profita
Jeanne is a manager in the Outsourced Accounting Solutions Department of Saltmarsh, Cleaveland & Gund. Her areas of expertise include preparation and review of financial statements, as well as preparing, processing, and filing sales tax returns. She serves our clients by providing support for QuickBooks® as a QuickBooks® Pro Advisor and other accounting software applications. Jeanne has over 25 years of experience working with various industries such as manufacturing, real estate, and professional service organizations.
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