The Employee Retention Credit is a federal credit that can benefit businesses and tax exempt organizations that have retained employees during the Coronavirus Pandemic. If your company has seen a decrease in revenue during 2020 or 2021 or has been negatively impacted by government ordered COVID-19 related restrictions, this may be an option for you.
Furthermore, if you received a PPP loan that doesn’t automatically disqualify you for the ERC. In order to claim the new Employee Retention Credit, eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns, which will be Form 941 for most employers, beginning with the second quarter. The credit is taken against the employer’s share of Social Security tax but the excess is refundable under normal procedures.
Still have some questions? No problem! If you believe that your company has been impacted and would like additional information please contact us at 770-461-5502. For more information, please see the IRS website here that provides more details.