Ending soon! Employee Retention Credit

Ihave been tracking a topic you may have heard about and taken advantage of OR, as in a lot of cases, decided it didn’t apply to your situation.

The issue is the Internal Revenue Service’s Employee Retention Tax Credit (ERTC or ERC). If you look closely, there are TWO conditions that qualify a business to claim the credit (tax credits are more powerful than tax deductions) EITHER a reduction in revenue due to COVID OR full OR PARTIAL suspension of trade. You have three years to file an amended Form 941X from the date of original filing.

The deadline for filing for this pandemic related tax credit is JUNE 30

I’M NOT A TAX EXPERT or a CPA, however, I strongly encourage you to make sure you aren’t leaving tax credits “on the table” unknowingly. Please check with your tax experts and confirm you have taken advantage of the tools and credits available to your business.

There’s an article I found on Forbes.com titled “IRS Defines Nominal For Purpose Employee Rentiton Tax Cred: The Definition Might Surprise Essential Businesses” by Lynn Mucenski Keck that may help you evaluate if you may qualify for this or other benefits. This is NOT an endorsement of the author/source of the content and make sure you verify the information for the specifics of your situation. I just wanted to make sure you get the information.

You can read the entire article here.

Here is a link to a video that shows how filing for the tax credit works – it might be useful in understanding how this could benefit you.

This information was gathered from several sources and provided by Jerry Petrick, senior certified business adviser with the Washington Small Business Development Center (SBDC) serving southwest Washington. The SBDC provides confidential business advisory services at no cost to the business. To schedule an appointment email: jerry.petrick@wsbdc.org