Have you claimed Employee Retention Credit?

The small business tax regulations have changed enormously in the last two years. 2022 is no exception, with many coronavirus deductions and deferrals now coming to an end. The Employee Retention Credit (ERC), which was created in 2020 as part of the CARES Act, ended in September 21. However, If you are a small business and missed the program, it’s not too late to file retroactively. It’s expected to play a big part in this year’s taxes.

It is a fully refundable payroll tax credit for employers that can add up to $70,000 per quarter and was created to encourage businesses to keep employees on their payroll.

The ERC underwent three major changes in the last two years which may be one of the reasons why many business owners didn’t apply for it. It was not originally open to those who took out a PPP load – that changed, as did the rules that limited how much a business could get depending on how much it had been impacted by the pandemic.

How we can help

Given all the changes in tax rules over the last two years, small business owners need the services of an advisor more than ever before.

If you need help or advice with your finances, contact us today for a free initial consultation. TaxAssist offers an expert professional advisory service. Inquire online here to book your free, no obligation consultation.

Date published Feb 25, 2022 | Last updated Jul 8, 2022

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.