Throughout 2021 we have kept you informed of significant regulatory matters related to the Employee Retention Credit (ERC). This credit was first introduced to us in 2020 through the Coronavirus Aid, Relief, and Economic Security (CARES) Act and was further modified in the Consolidated Appropriations Act of 2021 and the American Rescue Plan Act of 2021. The ERC was designed to incentivize employers to maintain their payroll during the coronavirus pandemic. We are seeing it assist many businesses in obtaining cash through refunds of payroll taxes paid or by reducing the outlay of cash during the payroll cycle. With the modifications in 2021, we are now assisting many businesses to realize benefits from an ERC application and wanted to make resources available to assist other businesses in applying.
These templates will assist you in determining your specific qualification and the potential credit to your business.
The ERC is currently set to expire on December 31, 2021, however, there are current discussions to discontinue the program prior to yearend. Therefore, it is important to determine your qualification and act quickly on these credits should you qualify. It is not too late to claim the ERC as you can amend previously filed payroll tax returns and request cash refunds for quarters that have already been filed and processed.
Just as working through the math for PPP funds was worthwhile for many, we are putting those numbers to work once again to relieve the tax burden via the ERC for many clients. Should any questions arise as you complete these calculations using the ERC templates, please contact Cray Kaiser at 630-953-4900.