When the COVID-19 pandemic pushed businesses to their breaking points, the government introduced initiatives to help companies stay afloat. The Employee Retention Credit (ERC), in particular, has been an important tool for businesses of all sizes.
What is the Employee Retention Credit Program?
To support struggling businesses and employees during the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act introduced retention credits. These tax credits encourage companies to retain their employees, despite overwhelming economic difficulties.
Available to businesses of all sizes, the retention credit can be calculated based on wages paid to employees during a particular period.
Is Your Business Eligible?
To qualify for the ERC (Employee Retention Credit), employers need to meet one of two conditions. First, if the government told the employer to stop or reduce their operations because of COVID-19, they may be eligible. Second, if the employer’s income went down a lot, they may also qualify.1
Employee Retention Credit 2023 Application
If your business meets these requirements and you’re looking to apply for employee retention credit in 2023, the claiming process is simple. Employers can claim the ERC by filing out form 9412 on their taxes.
If you’re just learning about retention credits in 2023, there’s no need to panic. You can claim the ERC retroactively up to three years after the original payroll taxes were due. Therefore, employers can take advantage of this credit until 2024 and, in some cases, 2025. We advise getting started on the applications as soon as possible.
Learn More About Retention Credit Today!
Claiming the ERC (Employee Retention Credit) is easy if you do your homework. It’s also a good idea to work with a tax professional who can help you get the most benefits for your business.
Don’t let this chance slip away to save money and support your employees. Start taking advantage of the ERC today!