Peter Fry

Your Local Business Advisor

 

Do you have more than two employees?

Are you aware of the Employment Retention Credit (ERC) scheme?

You may not realise it but you may be missing out on free Government money ……

money you are entitled to that is just sitting there waiting for you to just claim it!

The Employment Retention Credit (ERC) is a tax incentive program implemented in response to the COVID-19 pandemic in the United States

A FEW FACTS

Eligible employers could receive a tax credit of up to 50% of qualified wages paid to employees during the pandemic. The maximum credit amount per employee was $5,000 per year.

The ERC was established to encourage employers to retain and continue paying their employees during the economic challenges brought about by the pandemic. It was part of the CARES Act, and later extended and expanded through subsequent legislation.

The ERC was available for qualified wages paid between March 13, 2020, and December 31, 2020. Subsequent legislation extended the program to cover wages through various dates in 2021.

Qualified wages were defined differently depending on the size of the employer. For employers with 100 or fewer full-time employees, all wages paid to employees during the eligible period were considered qualified. For larger employers, only wages paid to employees who were not providing services due to COVID-19 disruptions were qualified

Initially, employers who received Paycheck Protection Program (PPP) loans were not eligible for the ERC. However, this restriction was lifted, allowing employers to potentially benefit from both programs, but not for the same wages.

Employers could claim the ERC as a refundable tax credit on their quarterly payroll tax returns, and they could also receive an advance payment of the credit if their anticipated credit exceeded their payroll tax liability.

The ERC underwent several changes through legislative updates, including increasing the credit rate, expanding eligibility, and extending the availability of the credit through 2021. It’s important to check the latest regulations and guidance for the most up-to-date information.

Alternatively, working with a company called FUNDWISE,  I can make it very simple for you where you do little and they can almost instantly tell you if you qualify. All you have to do is CLICK     HERE