If you are eligible for the Employee Retention Credit, please notify our Payroll Manager, Libby Lonski at email@example.com or (585) 410-6733 ext. 129, before October 15 to ensure that the ERC is included in your third quarter return for a faster refund.
The Employee Retention Credit is a refundable tax credit against certain employment taxes. The rules for the 2021 credit were expanded to include businesses that had either experienced a full or partial shutdown or had seen a more than 20% quarterly decline in gross receipts.
Eligible businesses can deduct up to 70% of up to $10,000 in qualified wages paid per employee per quarter — bringing the total annual amount of potential credit to $28,000 per employee this year. That's a significant bonus for certain businesses. The size of businesses that can claim the wages of all employees — versus only the ones that were working during the quarter — also changed for 2021. In 2020, businesses that had averaged more than 100 employees generally couldn’t claim all wages, but in 2021, that number went up to an average of 500 employees.
For more information about the Employee Retention Credit click here.
Contact your accountant if you have questions or if you are unsure if you qualify for the Employee Retention Credit .