Employee Retention Credit (ERC) – Dennis Gardiner, CPA, Managing Partner

Small business Tax

Have you analyzed, or spoken to your Gardiner + Company partner, or manager, about this tax credit? The ERC was improved during 2021 to reach more businesses and help more Americans stay employed. The ERC is:

+ A refundable payroll tax credit

+ Available to for-profit and not-for-profit businesses

+ Subject to two tests – a Revenue Test and Impact on Business Test

+ Computed differently for 2020 and 2021, using different rules

The IRS anticipated 70-80% of all businesses to be able to use this credit. You have three years from the time you filed your IRS Form 941 for each of the quarters; meaning you have until early April 2023 to amend your First Quarter 2020 Form 941.

President Biden’s signing of the Infrastructure Investment and Jobs Act (IIJA) on November 15, 2021, eliminated the ERC for wages paid after September 30, 2021. Reach out to us to learn more about this tax credit.

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