The Employee Retention Credit
We are going to keep this week’s blog short – today’s topic of the revised payroll credit is a complex one. One of the jobs at CPA On Fire is to keep our community of online entrepreneurs up to date on all the new tax updates and opportunities. Today, our topic is the Employee Retention Credit – now expanded by the Consolidated Appropriates Act, 2021.
If you have employees and meet the criteria, you can save up to $10,000 per employee. This is a payroll tax credit, so positive net income is not required.
Eligibility:
If any of your 2020 quarterly revenue dropped 20% in comparison to the corresponding 2019 quarterly revenue AND you have employees, you may be eligible.
If you think you are eligible, it is best to contact us directly. How to obtain the credit and what other factors influence to the calculation – especially if you received a PPP Loan – need special consideration.
Our CPA’s have been hard at work learning about the ins and outs of these new bills so we can better serve you and our community.
To find out if you may be eligible for the Employee Retention Credit, call into our office at 419-559-8775 or email us at info@cpaonfire.com.