Help for Small Businesses: Employee Retention Tax Credit

by Josh Biggs in Business on 6th January 2023

Small business owners are often challenged to keep their businesses running and employee retention can be a major obstacle. The Employee Retention Tax Credit (ERC) was designed to help small business owners retain their employees during the pandemic by providing an eligible tax credit for employee wages. This article provides information about employee retention tax credits and will talk about how easy the erc application process is. This is no reason to delay starting the process while there is still time.

Eligibility

To be eligible for employee retention tax credits, businesses must have their operations fully or partially suspended due to a government order related to COVID-19. They must also have had employee wages paid between March 13, 2020, and December 31, 2020. The employee retention tax credit is equal to 70% of qualified employee wages up to $10,000 per employee.

As a business, if you met this criterion, then you are still eligible to claim for what you were entitled to. It is just a matter of going through the process. it can make all the difference to businesses continuing to survive that they know just what money they can still claim. Economic times are hard enough without missing out on something your business was entitled to financially. It does not have to be too late to claim what is owed. Throughout the country, there are many unclaimed amounts relating to all kinds of activities, commercial and otherwise.

Application Process

The application process for employee retention tax credits is straightforward. Business owners should first consult their legal or tax advisors to determine if they are eligible and then proceed to the IRS website to complete an online application. The application requires basic business information such as company name and address, names of employees paid wages, employee compensation amounts, and the dates employee wages were paid.

Once the application is completed and submitted, business owners should receive confirmation from the IRS that their employee retention tax credit has been approved. The employee retention tax credits can then be claimed on their quarterly or annual federal income tax forms.

Why Have Someone Help With Your Claim?

If you are looking to maximize your credits then it pays to have a professional look at your ERC situation and make sure that you are claiming for all that you are due as a business. It is cost-effective if you have a lot of staff, with so many of them you could have claimed for. If you do not claim this now, it may be one of those business decisions that you will come to regret. It is worth the effort and a genuine amount that is payable to your business by the government.

Very often a small business will need to rely on outside help when it comes to financial and legal support. That is the way it is because most businesses of this size do not have sufficient in-house expertise to deal with unpredictable events. The Covid pandemic is an unprecedented event and nobody in business had the facts available to them to have prepared for it.

We should not feel embarrassed as a business to ask for such financial support as is on offer here. There is no sense of failure because the circumstances were out of the business’s control. Perhaps you are worried now about how it will look claiming late, but there is no need to worry because plenty of other businesses will be in the same position. This may be because they did not think that they were eligible or had no clue how to proceed with the application. All this can still be rectified when you find the right people to help.

In summary, small business owners can take advantage of employee retention tax credits to help keep their businesses running and employees employed during the COVID-19 pandemic. The application process is simple, making it easy for business owners to access the financial support they need. By applying for employee retention tax credits, small businesses can obtain much-needed relief and still retain their valued employees.

Categories: Business