Our firm has amended over 60 payroll tax returns in 2021 claiming over $1.75 Million in eligible tax credits for small businesses with 3 or more employees, all of which have been or will paid out in the form of a check and not applied against future tax. We would love to talk to any business owner with 3 or more employees to see if you are eligible so jump over to our “Contact” page to schedule some time to talk! (You are potentially eligible even if you received the 1st and/or 2nd rounds of PPP funding)
Below is a summary of the Employee Retention Tax Credit from the IRS website that we are claiming for clients:
The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make. Also, if the employer’s employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS.
For each employee, wages (including certain health plan costs) up to $10,000 can be counted to determine the amount of the 50% credit. Because this credit can apply to wages already paid after March 12, 2020, many struggling employers can get access to this credit by reducing upcoming deposits or requesting an advance credit on Form 7200, Advance of Employer Credits Due To COVID-19.