Employee Retention Credit: A Must-Know for Business Owners Post-Pandemic
Are you a small business owner looking for ways to boost your finances after the pandemic? Well, have you heard about the Employee Retention Credit offered by the IRS? This credit could be just what your business needs to thrive, and in this blog post, we'll tell you everything you need to know.
Tony Ramos, a tax attorney who specializes in helping small business owners with IRS issues, will guide you through the eligibility criteria, credit amounts, and even share a recent case study. So, buckle up and read on to find out how you can take advantage of this incredible opportunity!
What is Employee Retention Credit?
Employee Retention Credit is a credit offered by the IRS to employers that can be a great benefit to you. This credit is available for those employers that had employees in 2019 and the same quarters in 2020 and 2021. You compare them, and this could result in a big credit for the business owner.
Eligibility Criteria
To qualify for the Employee Retention Credit, you generally need to have experienced a decline in revenue in 2020 compared to 2019. Your business must have dropped by at least 50% in 2020 compared to the same quarter in 2019, or it only has to drop by 20% in 2021 to qualify for their credit.
Credit Amounts
In 2020, the employer can get a credit of up to $5,000 per year per employee, but it jumps to $21,000 per employee per year if they qualify. So together, 2020 $5,000 per year per employee, 2021 $21,000 per employee per year, for a total of $26,000 per employee. As you can see, that can add up pretty quickly.
Example of a Recent Case
Let's take an example of a client who had employees and PPP loans, part of which were forgiven. After four months of applying, the client received $309,160.
So, even if you got PPP loans and had some of those loans forgiven, you can still qualify for the Employee Retention Credit.
Requirements and Procedures
Of course, there are requirements, forms, and procedures that you have to comply with, including the records, the 941 that you filed, payroll records, and other requirements. However, it doesn't take that long to put it together and apply for it.
How Can You Get Started?
If you're interested in the Employee Retention Credit, click on the button below for a free case review to analyze your situation. There is no risk for you.
If we do all the work and apply for it, and you don't get the credit, you don't owe us anything. We'll negotiate a fair fee, and if you're able to get the credit, we'll get our fee as well.
In conclusion, the Employee Retention Credit can be a great opportunity for your business to retain employees after the pandemic. If you're interested, click on the link below for a free consultation to analyze your situation.