The Employee Retention Tax Credit has seen some recent amendments that have made it so that many more businesses, initially either excluded or those who chose PPP loans instead, are now eligible for several thousand dollars per each retained employee during 2020 and 2021. Read on to find out if your business qualifies. Employee Retention Tax Credit: Recent Changes That Could Help Your Business During the pandemic, there were several tax relief programs and items that made their way into the tax code. Some were near-permanent, and others were only for a short time during the worst of the lockdowns and layoffs. The Employee Retention Tax Credit was one of those programs, but it has seen big changes that may mean larger tax credits are available for your business even if you’ve already filed your business taxes for 2020 and 2021. The Employee Retention Tax Credit is one that has recently been expanded. In the early days of the program, businesses were told they could choose either PPP loans or the Employee Retention Tax Credit (ERTC). Because the PPP loans were more of a focus point for financial institutions like banks and other financial services providers, many businesses chose to take PPPs. But now, that stipulation is gone. So. Even if your business took a PPP loan to be able to continue paying your employees, you may also still be eligible for the ERTC. There are a few main ways to qualify for the Employee Retention Tax Credit if you paid employees during most or even just some of the pandemic: Full or Partial Shutdown: Your business is eligible if it was fully or partially shut down by any federal, state, or local shutdowns – these include travel restrictions, capacity restrictions or maximum occupancy gatherings, and more. Gross Receipts (Revenue) Lost: Your business is eligible if you experienced revenue loss in certain quarters of 2020 and 2021 as compared to those same quarters in 2019. How Much Tax Credit Does Your Business …
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