Employer Retention Tax Credit Update
To alleviate some of the financial burden of the Coronavirus Pandemic, the CARES Act created the Employee Retention Tax Credit (ERTC), among other tax credits (see prior DKC News article here). Since its debut in 2020, the ERTC has been expanded to apply to payroll tax reporting quarters in both 2020 and 2021. In addition, the qualification criteria has been enhanced to now include employers that have experienced a financial impact to operations due to a supply chain disruption caused by a government order. Currently, the ERTC is a refundable tax credit that is worth up to $5,000 per employee in 2020 and up to $7,000 per employee per quarter in 2021.
With the many recent changes to the credit, ERTC eligibility, analysis, and application has become a specialty. If you are interested in exploring this credit further for your business, please contact us and we will discuss options for further review to see how this credit may benefit you and your business.