Did you know that if you experienced a 50% drop in revenue in 2020 compared to 2019 or 20% compared to 2021, you qualify for the Employee Retention Tax Credit (ERTC)? You don’t want to miss out on this opportunity for your business! It can dramatically help your business as you recover from the pandemic.
If you’re unfamiliar with the ERTC, it’s a refundable payroll tax credit businesses receive on eligible employee costs, including wages and certain benefits. The credit is calculated per employee, with a maximum of $5,000 for 2020, or 50% of the employee cost. With a maximum of $21,000 per employee for 2021 or 70% of the employee cost. If you received government funds, including the PPP, RRF, and other payroll programs, you can still qualify for the ERTC. You just cannot “double-dip” into the same claimed wages. Even if you’re a new business and started after 2/15/2020, you can still qualify as a Startup Recovery Business with modified limits.
While the ERTC program ended last year, you can still claim the credit on amended payroll tax returns as long as the statute of limitations remains open (three years from the filing date). This means you have until the end of 2024 to take advantage of the employee retention credit against applicable employment taxes and qualified wages paid to their employees through December 31, 2021. To date, the Atascadero Chamber of Commerce has assisted businesses in receiving over $670,000 in ERTC funds.
Ready to get started on claiming your employee retention tax credits? You can contact our friends at the Pioneer Accounting Group by calling or texting (206) 745-9492 or emailing firstname.lastname@example.org. They can help you determine if your business qualifies (which a surprising amount do) and help you file the necessary paperwork to claim it.
-Josh Cross, Atascadero Chamber CEO
President & CEO of the Atascadero Chamber | Josh Cross