The COVID pandemic had a historic amount of businesses see massive drops in employment or completely shut down. The government was quick to respond with a range of programs to stop this from happening. The Employee Retention Credit was an effort aimed at employers. It was a federal tax credit designed to encourage employers to keep employees on their payroll during COVID.
While many businesses have already made use of this program, for many it still applies. Businesses may qualify for the credit if COVID reduced revenue, hours, or forced a complete suspension of services. Organizations like colleges and nonprofits as well as Recovery Startup Businesses also apply.
The process to secure the credit is relatively simple as well. The main thing to keep in mind is properly qualifying wages. This means cash payments, health care costs, and wages need to be reported all the same. The number of employees is also an important aspect in determining how much the credit can offer. Today in 2023 most businesses claim the credit by simply amending their tax filing. Not all businesses will be able to take advantage, but asking any experts and getting started cannot hurt. It was hard to be a business during COVID, take advantage of what was offered.
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