Our own Lynn Mucenski-Keck has been selected as a Forbes contributor and will be writing guest articles on changes and developments in the federal tax law on a regular basis. Her first article shares advice for ensuring your business is not missing out on the opportunity to have a positive cash impact related to the 2021 Employee Retention Credit.
Businesses around the country have been slow to evaluate, or quick to assume they are ineligible for, the 2021 Employee Retention Credit (“ERC”). The result: a significant amount of cash is still being paid to the federal government when it could remain with companies that need it.
In 2021 the maximum amount of ERC is $7,000 per employee, per quarter. Therefore, if a company can identify $10,000 of qualified wages from each employee in the first and second quarter in 2021, they are looking at a maximum ERC of $14,000 per employee. This means that a 10-person business could get a maximum ERC of $140,000 and a 300-person company could generate a $4,200,000 ERC. You get the idea. Big dollars are available for this credit and businesses are missing the opportunity due to lack of understanding, or possibly just COVID-19 burnout.
It is time to bust the myths surrounding the 2021 ERC and highlight the most common misunderstandings.
Read the full article on Forbes here.
The information and advice we are providing for this matter relates to COVID-19 legislative relief measures. Because legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that could modify some of the advice and information provided to you, after the conclusion of our engagement. We, therefore, make no warranties, expressed or implied, on the services provided hereunder.