Special Alert: Infrastructure Bill Would End
Employee Retention Credit Early

Marty McCarthy, CPA, CCIFP
Focused on You. Dedicated to Your Success.
August 4, 2021

A provision in the $1.2 trillion legislative package would largely end the employee retention tax credit (ERTC) on September 30, instead of the current December 31 deadline. Certain businesses that were created during the pandemic would still be able to use the tax break for wages paid through the end of the year.

The Joint Committee on Taxation estimated that the new end date for the ERTC would raise $8.2 billion. The provision is one of several in the bill that aims to offset the cost of spending in areas such as roads, transit, water infrastructure and broadband.

ERTC is a payroll tax credit meant to prevent businesses from laying off workers during the pandemic. The credit was initially established by the $2.2 trillion CARES Act in March 2020. It  was later expanded through subsequent coronavirus relief laws. The $1.9 trillion measure President Biden signed in March extended the tax credit from June 30 to December 31.

Senators are planning to pass the bill before they leave Washington for their August recess. The House has already started its recess and is not scheduled to return to Washington until next month.

Source: The Hill
Marty’s Thoughts
I highly encourage businesses that have not yet taken advantage of ERTC to do so soon. For 2021, the potential credit can be up to $28,000 per employee.

We have been able to save clients a lot of money by using ERTC. I am happy to discuss the potential tax saving you can realize.
Feel free to contact any member of our team at (610) 828-1900 (PA) or (732) 341-3893 (NJ) with questions. Rich Higgins, CPA, managing principal – New Jersey office can be contacted at Richard.Higgins@McCarthy.CPA. I can be reached at Marty.McCarthy@McCarthy.CPA. As always, we are happy to help.

Stay safe,

Marty McCarthy, CPA, CCIFP
Managing Partner
McCarthy & Company

Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice, and cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).