IRS WASHINGTON – The Internal Revenue Service urges employers to take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll.
The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, made a number of changes to the employee retention tax credits previously made available under the Coronavirus Aid, Relief, and Economic Sercurity Act, (CARES Act), including modifying and extending the Employee Retention Credit (ERC), for six months through June 30, 2021. Several of the changes apply only to 2021, while others apply to both 2020 and 2021.
As a result of the new legislation, eligible employers can now claim a refundable tax credit against the employer share of Social Security tax subject to qualifiers, percentages and limitations. Also, employers can access the ERC for the 1st and 2nd quarters of 2021 prior to filing their employment tax returns by reducing employment tax deposits. Small employers (500 or fewer employees) may request advance payment of the credit by filing a Form 7200.
Sadowski and Company has the knowledge and experience to determine if you meet the requirements for taking the credit. We understand the laws and rules for making the credit calculations and taking the credit or requesting the advance payments.
Let us go to work for you today to get your money back using the Employee Retention Credit! We’ll do the work to see if you qualify – and if you don’t – you won’t be charged anything. If you do quality, our fee will be a percentage of the credit.
Call or email your Sadowski & Co. contact today to get started or the below firm professional.