For businesses that haven’t already taken advantage, the Employee Retention Credit can be extremely helpful. The credit program, designed to incentive employers during the pandemic to keep their employees on the payroll, expired. It seems odd then to suggest that businesses today utilize the credit. Yet while the program itself has ended, the funding businesses earned is still available through a simple tax amendment.
Businesses that apply include those that suffered from COVID or that were suspended by the government. Specific organizations such as nonprofits and universities, as well as Recovery Startup Businesses, also have unique access to the program. Again, the credit is available through a simple tax amendment, but how to take advantage has a lot of variance.
For example, businesses with employees over a select target number are treated differently from those that are below. The credit can apply to all employees or only the employees who weren’t working depending on this condition. Other programs like the Paycheck Protection Program may also affect the validity of the credit for businesses. Finally, businesses must report all wages, including any health care costs provided.
Doing all of this makes it possible for thousands of dollars, per employee, to be provided by the credit. The program was made to boost businesses through COVID, to make up for revenue. Yet today it can be a nice benefit for businesses that did good work with no awareness of any incentive. It was hard to keep employees on the payroll during the pandemic, businesses deserve to reap the rewards.