Your Business May Now Be Eligible for the Employee Retention Credit
The Employee Retention Credit (“Credit”) offers employers much needed relief during these difficult times. The American Rescue Plan Act recently expanded the Credit program, so companies like yours may now be eligible for financial relief.
The Credit is a fully refundable tax credit for eligible employers who keep employees on their payroll. Recent regulations greatly expanded the size and availability of the Credit, so employers who originally did not qualify may now be eligible to take advantage of this relief.
The updated Credit provides a refundable tax credit of up to $7,000 on qualified wages for each employee retained between March 13 and December 31, 2020, and up to $14,000 for each retained employee between January 1 and December 31, 2021.
Eligible employers claim the Credit on their federal employment tax returns and the Credit is applied to the employer’s Social Security tax liability. If the the Credit exceeds your Social Security tax liability, you will receive a refund from the IRS.
The attorneys of Semanoff Ormsby Greenberg & Torchia, LLC are familiar with the Employee Retention Credit and can answer your questions to help you navigate through the tax credit process. If you believe your company might be a candidate for the Credit, we can get you started in making that determination. Please contact us at 215-887-0200 or by contacting any of the attorneys listed on our website.