4 Key Facts To Know Before Filing Your Business Taxes — Don’t Miss Out On ERTC
The last few years have been hectic, and it’s hard to keep track of all the changes that have been going on.
If you haven’t heard of the latest changes to the Employee Retention Tax Credit Program, that’s hardly surprising.
Whether you’ve heard of them or not, though, it’s a good idea to get a quick refresher on what’s changed in the last year, or you could be leaving money on the table by not claiming the full amount you’re eligible for.
While the program was originally set up in a way that very few business owners might benefit from it, that’s changed, and it has now become the second-largest source of financial aid for small businesses during the pandemic.
So before you file for 2021, here are a few things you should know:
1. Eligibility Has Expanded
Many business owners have been assuming that they’re not eligible for ERTC because they took a loan under the Paycheck Protection Program (PPP).
However, that was the old rules — under the new ones you can enroll in both programs, and if you were eligible for a PPP loan, you’re almost certainly eligible for ERTC.
2. You Can Claim Retroactive Credits
Did you already file for 2020, but didn’t claim your tax credits?
No need to worry, you can still claim them, and ERTC experts can help.
They can help you to file an amendment and claim your full amount, and the same goes for 2021 if you’ve filed already.
3. Claim Amounts Have Increased
The amount you can claim per employee for wages paid in 2020 has not changed — it’s still 50% of an employee’s wage, up to $5,000 per employee, per quarter.
For wages paid in 2021, that amount increased significantly — up to 70% of their wage, for a maximum of $7,000 per quarter.
4. You May Qualify As A Small Employer
One of the biggest changes that is being talked about the least is what defines an employer as “large” or “small.”
In 2020, to qualify as a small employer, your company had to employ 100 full-time staff or less, on average, each quarter.
In 2021 the rules were changed, allowing a huge number of employers to qualify that didn’t before.
Any employer who has 500 or fewer full-time staff on average can now qualify as a small employer for the purposes of the ERTC program.
These changes can make a big difference in your bottom line when it comes time to file, and you could be claiming thousands — or hundreds of thousands of dollars — in tax credits.
To find out if you qualify, or to maximize your claim, talk to an ERTC specialist today.
It’s your business, and your money — make sure you get every dollar you deserve!