The Long-Term Benefits of Retention Credit: How Incentivizing Employee Loyalty Can Drive Growth

2 minute read

By Gabby N.

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. You can learn more about this tax credit with an online search right now.

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. You can easily learn more about this program by researching online.

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

You can find more information about the requirements and check if your business qualifies by searching online.

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!

Gabby N.