Date: February 11, 2022
Where did the Employee Retention Credit Go?
Just as quickly as the Employee Retention Credit came, it also went. On March 11th, 2021, the government created the tax credit as a perk for small businesses. It allowed up to $33,000 in tax credits (per employee). When the CARES Act passed in March 2020, it outlined that you could either claim the ERC Credit or the PPP Forgivable loans. That changed in December 2020 when it was decided that the ERC credit was allowed to those businesses that took the forgivable loan option. Many businesses had to limit their hours, were temporarily shut down, or had to straight-up close for a bit, so this credit was a huge help! Read more details on this here.
So, what is up with this useful credit disappearing? We miss you. The ERC credit was meant to help small businesses keep their employees and not have to let them go. Even though it isn’t available for 2022, make sure that if eligible, you are receiving the credits you are able to get. We have helped our clients navigate the changes that COVID-19 has initiated. As you know, COVID did not magically disappear, now we have the cleverly named variants, still impacting many business owners. CP&A helped our clients gain access to $3 Million in capital through Economic Injury Disaster Loan Program, as well as almost $2 Million in forgivable loans through the Paycheck Protection Program. We want to help business owners thrive during these unprecedented times.
Even though new applications for the EIDL program are no longer being accepted, there are many ways to be proactive and reduce or even eliminate your tax bill through tax planning. If you don’t have a tax plan in place, you are most likely overpaying, and who wants to do that? Click here to schedule a call with one of our tax experts and see how you can start saving more money to put back into your business (and your retirement.)