The covid outbreak has affected many people globally. However, the Employee Retention Credit(ERC) has proved to be a helping hand to many people. The ERC is a new credit that was created under the CARES act. Many business owners do not realize the importance of the ERC credit for employees.
The tax credit provides significant help to the employees impacted by COVID-19. It encourages the employees to stay on their payroll without facing deductions. Many employees encountered difficulties in coping up with financial hardships during the lockdown. However, you must contact Sunrise Business Solutions to ensure you receive your ERC credits.
This blog covers the necessary details about ERC and how one can claim their ERC credits.
What is ERC?
Employee Retention Tax Credit is a tax benefit for the employers and employees affected by the COVID-19 outbreaks like lockdowns or quarantines. It is a tax credit that could be refunded and it allows employers to keep employees on their payroll.
ERC is beneficial for the employers and the employee. It is a fairly new tax credit that has been initiated by the government. If you do not know much about the scheme and want to ensure your eligibility about it, it would be helpful if you contacted Sunrise Business Solutions.
How can you claim ERC credits?
ERC credits are important for multiple employees. Similarly, employers and employees must know how they can claim the ERC credits. Otherwise, the refund would be of no use. Below are the steps that could help you in acquiring the ERC credits:
- Before applying for ERC credits, you must ensure your eligibility for the refundable claim. The employer can claim the refundable credits ranging from March 13, 2020 until September 30, 2021.
- The employer or the employee might only be eligible for the ERC credits if their gross income experienced significant bumps. The employer can ensure the eligibility by stating their suspension of activity in the workplace due to governmental orders of shut down due to COVID-19.
- Once ensured, the employer can claim upto $5,000 per employee for the year 2020 and up to $7,000 per employee for each eligible employee until the quarter of 2021.
- You can still claim the ERC credits now if you were not able to claim them during the pandemic or after the lockdown was lifted. Simply contact an experienced business solutions expert or a lawyer to claim the credits.
Claiming tax refunds could be crucial for almost everyone. However, people often neglect accounting for such tax credits. You must ensure to contact an experienced professional for initiating the claim of ERC credits. You can also claim credits individually by visiting the IRS website or searching for it online.