As businesses of all sizes and in all industries became directly or indirectly affected by regulations and shutdowns caused by the COVID-19 pandemic and the resulting economic downturn, it became clear that U.S. companies needed significant financial assistance to remain open.
The federal government authorized billions of dollars in aid specifically for businesses through the Employee Retention Credit (ERC) within the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). A refundable employment tax credit for eligible employers based on qualified wages and health plan expenses, the ERC allowed employers to use the funds to continue to pay existing employees and keep business running and staff working during the economic fallout caused by the Coronavirus.
Employers have been working hard to stay afloat during the pandemic. They simply don’t have the bandwidth to manage a constantly shifting business operations environments, learn and adhere to local, state and federal regulations and discover the ins and outs of the ERC to see if they are eligible. There are millions of unclaimed dollars available and nearly any company impacted by the pandemic is eligible to claim their credit. Businesses need to take advantage of this opportunity before funds run out, or the three-year claims window closes.
In addition to the ERC, the federal government has introduced other credits designed to help businesses weather the long-term effects of the pandemic and to encourage both innovation and the employment of American workers. Companies should talk with their tax preparers about these additional credits available to them including the Research & Development (R&D) tax credit, available to companies developing new or improved business components, and the PPP forgivable loan program, also established during the CARES Act and implemented and backed by the Small Business Administration.
Jay Woods is founder and President of Omega Accounting Solutions, responsible for the company’s business development and strategic planning. With 20 years of experience in financial management, business leadership, and corporate strategy, Woods’ focus is on building long-term strategic partnerships with clients and helping small business owners access a full-functioning accounting department. For more information about qualifying for the ERC and receiving a free evaluation from Omega Accounting Solutions, contact us today.
The post Should You File for the Employee Retention Credit? appeared first on Omega Accounting Solutions.
Youtube
GetErcLeads.com is Powered By GROW with MKG