FREE MONEY for US BUSINESS OWNERS! What exactly is ERTC?
FREE MONEY for US Businesses! What is ERTC?
What exactly is Employee Retention Credit (ERC)? The Employee Retention Tax Credit (ERTC) is an IRS tax credit designed to aid small-sized businesses retain their employees during these difficult times. The credit refunds payroll costs that have already been paid.
There is no requirement to reimburse the ERTC which is, in a way like the stimulus check that every taxpayer receives. Any business with less than 500 employees could be eligible. This includes even non-profits and new businesses.
What do I need to know to determine if I meet the requirements? In order to qualify to be eligible for the ERTC your business had to have been affected in one of two ways.
A decrease in gross receipts over a declared quarter. In any quarter declared by 2020, an decline of 50% or greater must be proven to be eligible for the credit; however the credit can be capped at $5,000 for the entire year. In 2021 the credit was widened to companies who have experienced only a 20% reduction in revenues. For each individual quarter in 2021, businesses are eligible to receive up to $7,000 worth of credit per worker.
It could be a "Complete or Partial" closure of your business. All over America, across the United States, local government restrictions and regulations were put in place; social distancing, being required to be able to work at home, or even the closure of your company in totality.