As we approach the final window to claim the Employee Retention Credit (ERC) for 2021, businesses that have yet to capitalize on this opportunity should take urgent action. Designed to aid businesses that retained employees during the COVID-19 pandemic, the ERC could significantly bolster your business’s finances.
Understanding the 2021 Employee Retention Credit
The ERC offers a lifeline, providing up to $7,000 per employee per quarter for the first three quarters of 2021, which totals a substantial $21,000 per employee. If you have ten qualifying employees, that’s a potential $210,000 in tax credits.
Eligibility hinges on several factors so be sure to work with a knowledgeable company that can guide you through the process.
Businesses with up to 500 full-time employees in 2021 can claim the credit for all their employees.
Started your venture post-February 15, 2020? You’re potentially eligible for up to $100,000 in credits.
Why Act Now?
The deadline to amend your payroll tax returns for 2021 and claim the ERC is April 15, 2025. Despite the approaching deadline, there’s still a chance to make a significant claim, but immediate action is required.
Many businesses assume they can’t claim the ERC if they received PPP loans or believe it’s too late to apply. Others are deterred by the perceived complexity of filing amendments. However, these misconceptions could be costing your business valuable financial opportunities.
Review your business’s 2021 financials to determine eligibility. If you’re unsure or need assistance, consider consulting with a tax professional who specializes in the ERC to ensure you navigate the process correctly and maximize your potential benefits.
The clock is ticking on a valuable opportunity for your business. If you qualify for the 2021 ERC and haven’t claimed it yet, now is the time to act. Don’t miss out on up to $210,000 that could support your business’s growth and recovery.
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