Small businesses have been struggling in this economy.
One of the reasons is that they don't have as much money to spend on their employees, but now that the Consolidated Appropriations Act of 2021 has passed, small business owners like you may be eligible for an employee retention credit (ERC).
This is thanks to these three big changes made:
- It's no longer either the ERC OR Paycheck Protection Program loan (PPP Loan). You're now eligible for both but you can't use the same wages.
- You can go back and apply this rule to your 2020 wages.
- The ERC for 2021 is enhanced.
The new law (ARPA - American Rescue Plan Act) passed in March and extends the enhanced ERC through December 31. This give business owners six more months to claim the credit.
The ERC is a great way to help you pay employees during the COVID-19 pandemic, and it can put thousands of dollars in your pocket!
The current credit rate for the first quarter of 2021 is 70% on up to $10,000 of W-2 wages per employee.
This means that if you had 4 employees and you paid them each $10K in the first quarter of 2021, then your employee retention credit is $28,000 (70% of $40,000). That's not some chump change!
Use this quick and easy tool to see if you qualify: https://airtable.com/shruPVpqUEDGRSRKH?prefill_Emailemail@example.com
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