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Did you have W-2 employees in 2020 or 2021? If so, you might not have filed for the Employee Retention Credit (ERC), but it’s not too late.
Business owners can still qualify for up to $5,000 in credits per employee for 202 and up to $7,000 in credits per employee for 2021 for quarters one through three. Overall, that’s $26,000 per employee, something you shouldn’t ignore.
So how do you get the ERC?
You’ll need IRS Form 941-X filed by March 15, 2024, if you are an S-corp or partnership, and April 15, 2024, if you file as a C-corp or file Schedule C on your 1040.
Now you probably want to know how to qualify, right?
- You had a serious decline in gross receipts. You must show that gross receipts were 50% less in 2020 than in the same quarter in 2019 or 20% less in 2021.
- You were affected by the shutdowns. You must prove the order to shut down or reduce your employees’ hours by more than 10 percent compared to what you had in 2019 affected your business.
- The government shutdown affected your business’s ability to provide goods or services by 10 percent or more.
The ERC is a valuable way to help your business. If you haven’t taken your ERC yet, it’s time. Contact me today to learn more.