Hampton Roads, VA, USA – January 11, 2021 – Would $7,000/employee help small businesses in the next 3 months?
With the opportunity for an additional $7,000/employee later this year?
If a business was operating in 2019, 2020, and 2021 the federal government has great news!
In the December 27, 2020, Stimulus Bill was an update to the Employee Retention Credit (ERC)!!
This is a small business tax credit to incentivize employers to retain their employees through the pandemic.
According to Adam Knihtila, owner of Work From Home Financial, “The PPP and PPP 2.0 are more well known (for obvious reasons) but the ERC may be more valuable to small employers as it provides dollar for dollar relief against taxes and can be refundable.”
Here Is How This Small Business Tax Credit Works
If the business had to fully/partially shut down operations due to COVID (governmental regulations/shutdowns)
Had a 20% reduction in gross revenue compared to the same quarter in 2019 (not 2020)
The business didn’t use the same funds for PPP purposes (1.0 or 2.0)
The business has 500 or fewer employees
The Business Qualifies for a credit up to $7,000 PER employee for the wages and health insurance benefits paid during the following time periods:
Quarter 1 2021: January-March
Quarter 2 2021: April-June
For a maximum credit of $14,000 per employee
Even better, the business can amend its 2020 payroll taxes if it didn’t claim the $5,000/employee credit originally. The requirements and credit amounts are slightly different for 2020 amendments so reach out to a tax advisor for further details.
Here is where Work From Home Financial comes in
Work From Home Financial will review business 2020 and 2019 revenue and their 2020 quarterly payroll tax forms FOR FREE!
For those who qualify, Work From Home Financial will amend the forms and help businesses claim their additional small business tax credit:
AMEND all 4 quarters for $497
or AMEND just 1 quarter for $297
Zero Risk Opportunity!
Schedule an appointment with Work From Home Financial HERE and talk about this business tax credit. Their tax professionals are ready to discuss payroll taxes and help business owners see if they qualify.
Check back often as Work From Home Financial add additional tax tips and financial advice on a regular basis to their blog: https://accountantthatcares.com/blog.
Work From Home Financial