The Employee Retention Credit (ERTC) was created by the Economic Recovery Tax Act of 1981 to encourage businesses to retain employees during recessions. It provides a tax credit of up to $5,000 per employee if the company pays an eligible wage and meets other requirements.
In order to qualify for the ERTC, your company must meet certain conditions. First, the company must have been in existence for at least three years before the start of the recession. Next, the company must have experienced a reduction in employment of at least 20% over the three year period before the recession began. In addition, the company must have paid wages to its employees that were equal to or greater than $1,000 per week in each of those three years.
Once you’ve determined that your company qualifies for the ERTC, you’ll need to fill out an IRS Form 8822. This form will ask you questions about the wages you paid to your employees during the qualifying years, as well as the number of hours worked by each employee. The IRS will then determine whether your company qualifies for the ERTCC, and if it does, you’ll be reimbursed with a tax rebate check.
There are several limitations on the amount of money you can receive. For example, if your company has less than 100 employees, you cannot claim the full $5,000. Also, if you’re not paying your employees’ health insurance premiums, you can’t get any reimbursement for that.
The ERTC is intended to help small businesses retain their employees during recessions. However, there’s no guarantee that your company will actually get the ERTC rebate. If you don’t meet all of the qualifications, you may not be able to claim the credit.
If you’re interested in claiming the ERTC, contact your accountant or tax attorney. They’ll be able to help you determine whether your company qualifies for this credit.
It is wise to contact a top-tier ERC accountant to maximize your refund. You can check here whether your business is eligible and how much you may receive: https://ertcrefundclaim.com