The Coronavirus Aid, Relief and Economic Security (CARES) Act created a new employee retention tax credit for employers who are closed, partially closed, or experiencing significant revenue losses as a result of COVID-19. This qualification encompasses most businesses.
We will assist you and your CPA in claiming this valuable new tax credit.
Private Employers including non-profits.
What Is the Benefit?
50% of qualified wages paid, a maximum tax credit of $5,000 per employee.
How to Claim It?
Immediate reimbursement through payroll tax payments.
Under the CARES Act, eligible employers may acquire a refundable tax credit against the employer portion of Social Security tax imposed by I.R.C. Section 3111(a) based on amounts of qualified wages paid to employees from March 13 to Dec. 31, 2020. This tax credit is known as the employee retention credit.
An employer cannot apply the employee retention credit against its payroll tax liability if the employer acquires a loan through the Paycheck Protection Program, even if the employer did not receive forgiveness of all or part of the loan.
Click here for basic FAQ's concerning this new law.