The Employee Retention Credit, which has been infusing businesses with cash that have been affected by the Covid-19 pandemic, is due to be terminated three months earlier than hoped. The legislation known as the Infrastructure Investment and Jobs Act, which will soon likely be signed into law, ends the Employee Retention Credit as of September 30, 2021. All wages paid starting October 1, 2021 are ineligible for the credit.
The Employee Retention Credit has been a lifeline for many businesses and was intended to help retain workforces and avoid laying off employees during the pandemic. Eligible businesses have been able to obtain a credit, claimed quarterly, up to $33,000 per employee ($5,000 for each full-time employee retained from 10/01/2020 – 12/31/2020 and $28,000 for each full-time employee retained from 01/01/2021 – 09/30/2021).
Eligible businesses can still claim the Employee Retention Credit for prior quarters by amending payroll tax returns.
Not sure if your business qualifies? Give us a call (818) 243-3455 to see if you are eligible for this great tax credit!