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<p>The Employee Retention Credit (ERC) is a valuable tax credit that was introduced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses retain their employees during the COVID-19 pandemic. One of the key factors in determining the amount of the credit is the qualified wages paid to eligible employees. In this blog post, we will explore what counts as qualified wages for the ERC and how to report them.</p><p><br></p><blockquote><p>If All This Sounds Too Complicated, We Can Help With A <a data-mce-href="https://ercassessments.com/doesmybusinessqualifyforerc" href="https://ercassessments.com/doesmybusinessqualifyforerc">Free ERC Assessment﻿</a></p><p><br></p></blockquote><h2>What are Qualified Wages?</h2><p>Qualified wages are the wages paid to eligible employees that can be used to calculate the ERC. These wages include both cash compensation and certain qualified health plan expenses. However, it is important to note that there are certain limitations and exclusions when it comes to qualified wages.</p><h3>Cash Compensation</h3><p>Cash compensation includes wages, salaries, tips, and other taxable compensation paid to employees. This includes both full-time and part-time employees. However, the amount of cash compensation that can be considered as qualified wages is limited to $10,000 per employee per calendar quarter.</p><figure id="figure-xuu1v0ggvlmhallgg"><img id="xuu1v0ggvlmhallgg" src="https://images.unsplash.com/photo-1629196753813-8b4827ddc7c0?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxNnx8cXVhbGlmaWVkJTIwd2FnZXN8ZW58MHx8fHwxNjk0NTgyMzg1fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="qualified wages" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1629196753813-8b4827ddc7c0?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxNnx8cXVhbGlmaWVkJTIwd2FnZXN8ZW58MHx8fHwxNjk0NTgyMzg1fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Qualified Health Plan Expenses</h3><p>In addition to cash compensation, qualified health plan expenses can also be considered as qualified wages for the ERC. This includes both the employer's share of health insurance premiums and the amount of health plan expenses paid by the employee with pre-tax salary reduction contributions. However, these expenses are only eligible for the credit if they are not already taken into account for the Families First Coronavirus Response Act (FFCRA) paid leave credits or for the employer's deduction for health plan expenses.</p><h2>How to Report Qualified Wages?</h2><p>Reporting qualified wages for the ERC is done through the employer's quarterly federal tax return, Form 941. The credit is reported on Line 11c of Form 941 for the applicable calendar quarter. It is important to accurately report the qualified wages to ensure that you receive the maximum credit amount.</p><h3>Keep Detailed Records</h3><p>To properly report qualified wages, it is essential to maintain detailed records. This includes records of the number of eligible employees, the amount of qualified wages paid to each employee, and any supporting documentation related to health plan expenses. These records will be crucial in case of an audit or if the IRS has any questions regarding your claim for the ERC.</p><figure id="figure-1zda0qxqu9lmhalnfx"><img id="1zda0qxqu9lmhalnfx" src="https://images.unsplash.com/photo-1623945194105-cd36c4433390?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxOHx8cmVwb3J0aW5nJTIwcXVhbGlmaWVkJTIwd2FnZXN8ZW58MHx8fHwxNjk0NTgyMzg4fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="reporting qualified wages" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9; object-position: center center;" data-corners="no-rounded" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-mce-src="https://images.unsplash.com/photo-1623945194105-cd36c4433390?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxOHx8cmVwb3J0aW5nJTIwcXVhbGlmaWVkJTIwd2FnZXN8ZW58MHx8fHwxNjk0NTgyMzg4fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Consult with a Tax Professional</h3><p>While reporting qualified wages for the ERC may seem straightforward, it is always a good idea to <a data-mce-href="https://ercassessments.com/doesmybusinessqualifyforerc" href="https://ercassessments.com/doesmybusinessqualifyforerc">consult with a tax professional</a> to ensure compliance with all the requirements and to maximize your credit. They can provide guidance on how to properly calculate and report qualified wages, as well as help you navigate any complexities that may arise.</p><h2>In Conclusion</h2><p>The Employee Retention Credit is a valuable tax credit that can help businesses offset the financial impact of the COVID-19 pandemic. Understanding what counts as qualified wages and how to report them is crucial to ensure that you receive the maximum credit amount. By keeping detailed records and consulting with a tax professional, you can take full advantage of this credit and support your business during these challenging times.</p>

Qualified Wages: What Counts for the Employee Retention Credit (ERC) and How To Report Them

<p>As a business owner, you are always looking for ways to save money and maximize your profits. One often overlooked opportunity is the Employee Retention Credit (ERC). This tax credit was introduced as part of the CARES Act in 2020 to help businesses retain their employees during the COVID-19 pandemic. However, many business owners are not aware of the upcoming deadline to claim this credit.</p><h2>What is the Employee Retention Credit?</h2><p>The Employee Retention Credit is a refundable tax credit that provides financial relief to businesses that were adversely affected by the pandemic. It allows eligible employers to claim a credit against their payroll taxes for a percentage of qualified wages paid to their employees. This credit can be a significant boost to your bottom line, so it's important not to miss out on the opportunity to claim it.</p><h2>Who is eligible for the Employee Retention Credit?</h2><p>Eligibility for the Employee Retention Credit depends on several factors. Firstly, your business must have experienced a significant decline in gross receipts or been fully or partially suspended due to government orders related to COVID-19. Additionally, the credit is available to businesses of all sizes, including tax-exempt organizations.</p><p><br></p><blockquote><p>Need To Know If Your Business Is Eligible For ERC?</p><p>You'll Love Our Easy, Free ERC Assessment.</p><p><a data-mce-href="https://ercassessments.com/doesmybusinessqualifyforerc" href="https://ercassessments.com/doesmybusinessqualifyforerc">Find Out More﻿</a></p><p><br></p></blockquote><figure id="figure-pdqf52d5qilmhacapg"><img id="pdqf52d5qilmhacapg" src="https://images.unsplash.com/photo-1573166675921-076ea6b621ce?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyM3x8ZW1wbG95ZWUlMjByZXRlbnRpb24lMjBjcmVkaXR8ZW58MHx8fHwxNjk0NTgxNTk4fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="employee retention credit" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1573166675921-076ea6b621ce?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyM3x8ZW1wbG95ZWUlMjByZXRlbnRpb24lMjBjcmVkaXR8ZW58MHx8fHwxNjk0NTgxNTk4fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>What is the deadline to claim the Employee Retention Credit?</h2><p>The deadline to claim the Employee Retention Credit for qualified wages paid in 2020 is fast approaching. To be eligible for the credit, you must file Form 941, Employer's Quarterly Federal Tax Return, for the relevant quarter by the due date. For most businesses, this means filing the form by January 31, 2021.</p><h2>How much can you save with the Employee Retention Credit?</h2><p>The amount of money you can save with the Employee Retention Credit depends on several factors, including the number of employees and the amount of qualified wages paid. The credit is calculated as 50% of qualified wages up to $10,000 per employee for the entire year. This means that for each eligible employee, you could potentially save up to $5,000 in taxes.</p><figure id="figure-7ky9mi0iw5lmhaccl3"><img id="7ky9mi0iw5lmhaccl3" src="https://images.unsplash.com/photo-1526948531399-320e7e40f0ca?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxfHxlbXBsb3llZSUyMHJldGVudGlvbiUyMGNyZWRpdHxlbnwwfHx8fDE2OTQ1ODE1OTh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="employee retention credit" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1526948531399-320e7e40f0ca?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxfHxlbXBsb3llZSUyMHJldGVudGlvbiUyMGNyZWRpdHxlbnwwfHx8fDE2OTQ1ODE1OTh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>How to claim the Employee Retention Credit?</h2><p>Claiming the Employee Retention Credit is a relatively simple process. You will need to complete Form 941 for the relevant quarter and include the credit on line 11c. If the credit exceeds the amount of payroll taxes owed, you can request a refund or apply the excess credit to future payroll taxes. It's important to consult with a tax professional or accountant to ensure you are claiming the credit correctly.</p><h2>Don't miss out on the Employee Retention Credit!</h2><p>The Employee Retention Credit can provide much-needed financial relief for businesses struggling during these challenging times. It's crucial to take advantage of this opportunity before the deadline passes. Remember to gather all the necessary documentation and <a data-mce-href="https://ercassessments.com/doesmybusinessqualifyforerc" href="https://ercassessments.com/doesmybusinessqualifyforerc">consult with a professional</a> to ensure you are maximizing your savings.</p><figure id="figure-ee49o44uojlmhace8f"><img id="ee49o44uojlmhace8f" src="https://images.unsplash.com/photo-1573497491765-dccce02b29df?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw5fHxlbXBsb3llZSUyMHJldGVudGlvbiUyMGNyZWRpdHxlbnwwfHx8fDE2OTQ1ODE1OTh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="employee retention credit" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1573497491765-dccce02b29df?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw5fHxlbXBsb3llZSUyMHJldGVudGlvbiUyMGNyZWRpdHxlbnwwfHx8fDE2OTQ1ODE1OTh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>In conclusion</h2><p>The Employee Retention Credit is a valuable tax credit that can help businesses save money and retain their employees. Don't miss out on this opportunity to <a data-mce-href="https://ercassessments.com/doesmybusinessqualifyforerc" href="https://ercassessments.com/doesmybusinessqualifyforerc" data-mce-selected="inline-boundary">claim the credit before the deadline</a>. Take the time to understand the eligibility requirements, gather the necessary documentation, and consult with a tax professional to ensure you are maximizing your savings. By taking advantage of the Employee Retention Credit, you can give your business the financial boost it needs during these challenging times.</p>

Don't Miss Out: Employee Retention Credit (ERC) Deadline Explained

<p>As a business owner, you know that every decision you make can have a ripple effect on your company. This is especially true when it comes to wage and salary decisions. One factor that can impact these decisions is the Employee Retention Credit (ERC).</p><h2>What is the Employee Retention Credit?</h2><p>The ERC is a tax credit that was introduced in response to the COVID-19 pandemic. It was designed to encourage businesses to keep their employees on the payroll, even if they were not able to operate at full capacity. The credit is worth up to $5,000 per employee and can be claimed on your quarterly tax filings.</p><h3>How does the ERC impact wage and salary decisions?</h3><p>The ERC can have a significant impact on your wage and salary decisions. If you are eligible for the credit, it can help you offset the cost of keeping your employees on the payroll. This can make it easier to justify giving your employees raises or bonuses, even if your company is not performing as well as it was before the pandemic.</p><figure id="figure-1l8vql2ztlmha4q3g"><img id="1l8vql2ztlmha4q3g" src="https://images.unsplash.com/photo-1526948531399-320e7e40f0ca?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxfHxlbXBsb3llZSUyMHJldGVudGlvbiUyMGNyZWRpdHxlbnwwfHx8fDE2OTQ1ODE1OTh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="employee retention credit" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1526948531399-320e7e40f0ca?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxfHxlbXBsb3llZSUyMHJldGVudGlvbiUyMGNyZWRpdHxlbnwwfHx8fDE2OTQ1ODE1OTh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>What are the eligibility requirements for the ERC?</h3><p>To be eligible for the ERC, you must meet certain criteria. </p><p>First, your business must have experienced a significant decline in gross receipts due to the pandemic. </p><p>Second, your business must have been either fully or partially shut down by a government order related to COVID-19, or you must have experienced a significant decline in operations due to the pandemic.</p><p><br data-mce-bogus="1"></p><blockquote><p>Not Sure If Your Qualify for ERC? Need More Help Deciding?</p><p>We Can Help Get A Free ERC Assessment By <a data-mce-href="https://ercassessments.com/doesmybusinessqualifyforerc" href="https://ercassessments.com/doesmybusinessqualifyforerc">Clicking Here</a>.</p><p><br data-mce-bogus="1"></p></blockquote><h2>How can you claim the ERC?</h2><p>If you believe that you are eligible for the ERC, you can claim it on your quarterly tax filings. You will need to fill out Form 941, which is used to report your payroll taxes. The credit will be applied against the employer portion of your Social Security taxes.</p><figure id="figure-iub8ulnyxjlmha4t8u"><img id="iub8ulnyxjlmha4t8u" src="https://images.unsplash.com/photo-1519423836910-49d53e49398c?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw5fHxmb3JtJTIwOTQxfGVufDB8fHx8MTY5NDU4MTYwMnww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="form 941" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1519423836910-49d53e49398c?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw5fHxmb3JtJTIwOTQxfGVufDB8fHx8MTY5NDU4MTYwMnww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>What are the benefits of claiming the ERC?</h3><p>There are several benefits to claiming the ERC. First, it can help you offset the cost of keeping your employees on the payroll. Second, it can help you retain your employees, which can be especially important if you are in a competitive industry. Finally, it can help you improve your bottom line by reducing your tax liability.</p><h2>Conclusion</h2><p>The Employee Retention Credit can have a significant impact on your wage and salary decisions. If you are eligible for the credit, it can help you offset the cost of keeping your employees on the payroll, which can make it easier to justify giving your employees raises or bonuses. If you believe that you are eligible for the ERC, be sure to claim it on your quarterly tax filings.</p><p>And be sure to check out our <strong><a data-mce-href="https://ercassessments.com/doesmybusinessqualifyforerc" href="https://ercassessments.com/doesmybusinessqualifyforerc" data-mce-selected="inline-boundary">free ERC assessment</a></strong> to find out if you're eligible.</p><figure id="figure-3arh76p35lmha4vne"><img id="3arh76p35lmha4vne" src="https://images.unsplash.com/photo-1608022989714-e1fd968552c5?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxfHxjb25jbHVzaW9ufGVufDB8fHx8MTY5NDU4MTYwNnww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="conclusion" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1608022989714-e1fd968552c5?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxfHxjb25jbHVzaW9ufGVufDB8fHx8MTY5NDU4MTYwNnww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure>

The Ripple Effect: How The Employee Retention Credit (ERC) Impacts Wage and Salary Decisions

<p>As a business owner, you know that protecting your bottom line is essential for the success of your company. One way to do this is by taking advantage of the Employee Retention Credit (ERC). This valuable tax credit can help you save money and retain your valuable employees. In this blog post, we will explore the ERC and how it can benefit your business.</p><h2>What is the Employee Retention Credit?</h2><p>The Employee Retention Credit is a tax credit that was introduced as part of the CARES Act in response to the COVID-19 pandemic. It is designed to help businesses keep their employees on payroll, even during challenging times. The credit is available to businesses of all sizes, including tax-exempt organizations.</p><h3>How does it work?</h3><p>The ERC is calculated based on a percentage of qualified wages paid to eligible employees. For 2021, the credit is equal to 70% of qualified wages, up to a maximum credit of $7,000 per employee per quarter. This means that if you have 10 eligible employees and you pay each of them $10,000 in qualified wages in a quarter, you could potentially receive a credit of $70,000.</p><figure id="figure-737u2mfek7lmf3e3ei"><img id="737u2mfek7lmf3e3ei" src="https://images.unsplash.com/photo-1556740738-b6a63e27c4df?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyfHxlbXBsb3llZSUyMHJldGVudGlvbiUyMGNyZWRpdHxlbnwwfHx8fDE2OTQ0MDkwMTd8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="employee retention credit" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1556740738-b6a63e27c4df?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyfHxlbXBsb3llZSUyMHJldGVudGlvbiUyMGNyZWRpdHxlbnwwfHx8fDE2OTQ0MDkwMTd8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>Who is eligible for the Employee Retention Credit?</h2><p>There are two main criteria for eligibility. First, your business must have experienced either a full or partial suspension of operations due to a government order or a significant decline in gross receipts compared to the same quarter in 2019. Second, you must have had an average of 500 or fewer full-time employees in 2019.</p><blockquote><p><br data-mce-bogus="1"></p><p>Think you business qualifies? Not Sure?</p><p><a data-mce-href="https://ercassessments.durable.co/doesmybusinessqualifyforerc" href="https://ercassessments.durable.co/doesmybusinessqualifyforerc">Get A Free Assessment Here</a></p></blockquote><h3><br></h3><h3>How can the Employee Retention Credit benefit your business?</h3><p>The ERC can provide significant financial relief for your business. By reducing your payroll tax liability, it can help you free up cash flow and allocate resources to other areas of your business. It can also help you retain your valuable employees during challenging times, ensuring that you have a skilled and experienced workforce when the economy recovers.</p><figure id="figure-gb0f4bhnmlmf3e8ri"><img id="gb0f4bhnmlmf3e8ri" src="https://images.unsplash.com/photo-1507914464562-6ff4ac29692f?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw2fHxidXNpbmVzcyUyMG93bmVyfGVufDB8fHx8MTY5NDQ0OTM1M3ww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="business owner" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1507914464562-6ff4ac29692f?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw2fHxidXNpbmVzcyUyMG93bmVyfGVufDB8fHx8MTY5NDQ0OTM1M3ww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>How to claim the Employee Retention Credit?</h2><p>Claiming the ERC is a relatively straightforward process. You can claim the credit on your quarterly employment tax return, Form 941. If the credit exceeds your payroll tax liability, you can request a refund or apply it to future quarters. It is important to keep accurate records and documentation to support your claim, as the IRS may request additional information during an audit.</p><h3>Additional considerations</h3><p>It is important to note that if you received a Paycheck Protection Program (PPP) loan, you may still be eligible for the ERC. However, you cannot claim the credit for wages that were used to qualify for PPP loan forgiveness. It is recommended to consult with a tax professional or accountant to fully understand the implications and benefits of claiming the ERC for your specific business situation.</p><figure id="figure-8ju2t1z8n8lmf3emm2"><img id="8ju2t1z8n8lmf3emm2" src="https://images.unsplash.com/photo-1641790176913-5b573e7ebacd?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMXx8dGF4JTIwY3JlZGl0fGVufDB8fHx8MTY5NDQ0OTM3MXww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="tax credit" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1641790176913-5b573e7ebacd?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMXx8dGF4JTIwY3JlZGl0fGVufDB8fHx8MTY5NDQ0OTM3MXww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h2>In conclusion</h2><p>The Employee Retention Credit can be a valuable tool for business owners looking to protect their bottom line and retain their employees. By taking advantage of this tax credit, you can save money, improve cash flow, and ensure the stability of your workforce. If you believe your business may be eligible for the ERC, it is worth exploring further and consulting with a tax professional to maximize its benefits.</p><p>Ready to get started on applying? <a data-mce-href="https://ercassessments.durable.co/doesmybusinessqualifyforerc" href="https://ercassessments.durable.co/doesmybusinessqualifyforerc">Start here</a>!</p>

Protecting Your Bottom Line: Employee Retention Credit (ERC) for Business Owners

<p>As businesses continue to navigate the challenges brought on by the COVID-19 pandemic, many are looking for ways to keep their doors open and their employees on payroll. One option that has gained popularity is the Employee Retention Credit (ERC), a tax credit designed to incentivize businesses to keep their employees on payroll during the pandemic.</p><h2>What is the ERC?</h2><p>The Employee Retention Credit is a tax credit available to eligible employers who retained employees during the pandemic. The credit is equal to 50% of qualified wages paid to employees, up to a maximum of $5,000 per employee.</p><h3>Who is eligible for the ERC?</h3><p>Eligible employers include those who:</p><ul><li>Were in operation in 2020 or 2021</li><li>Experienced a significant decline in gross receipts</li><li>Had to fully or partially suspend operations due to a government order</li></ul><p>Employers must also meet other requirements, such as having fewer than 500 employees and not receiving a Paycheck Protection Program loan.</p><blockquote><p>Take The Guesswork Out Of The Analysis. Use The Best ERC Professionals. <a data-mce-href="https://ercassessments.com/doesmybusinessqualifyforerc" href="https://ercassessments.com/doesmybusinessqualifyforerc">Find Out How</a></p></blockquote><h2>How to apply for the ERC</h2><p>Applying for the Employee Retention Credit is a multi-step process that requires careful attention to detail. Here's what you need to do:</p><h3>Step 1: Determine eligibility</h3><p>The first step in applying for the ERC is to determine whether your business is eligible. Review the eligibility requirements carefully to ensure that you meet all of the criteria.</p><h3>Step 2: Calculate the credit</h3><p>Once you've determined that you're eligible for the ERC, the next step is to calculate the credit. This involves determining the qualified wages paid to employees during the eligible period.</p><figure id="figure-mbie6gifqxlmefdprp"><img id="mbie6gifqxlmefdprp" src="https://images.unsplash.com/photo-1560250097-0b93528c311a?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw5fHxlbXBsb3llZSUyMHJldGVudGlvbiUyMGNyZWRpdHxlbnwwfHx8fDE2OTQ0MDkwMTd8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="employee retention credit" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1560250097-0b93528c311a?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw5fHxlbXBsb3llZSUyMHJldGVudGlvbiUyMGNyZWRpdHxlbnwwfHx8fDE2OTQ0MDkwMTd8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Step 3: File Form 941</h3><p>After calculating the credit, you'll need to file Form 941, the employer's quarterly tax return. This form is used to report wages paid to employees and the associated taxes.</p><figure id="figure-c0h69zstq4lmefdqmr"><img id="c0h69zstq4lmefdqmr" src="https://images.unsplash.com/photo-1517284541949-057f9c145c26?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw1fHxmb3JtJTIwOTQxfGVufDB8fHx8MTY5NDQwOTAxOHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="form 941" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1517284541949-057f9c145c26?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw1fHxmb3JtJTIwOTQxfGVufDB8fHx8MTY5NDQwOTAxOHww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Step 4: Claim the credit on Form 941</h3><p>When filing Form 941, you'll need to claim the Employee Retention Credit on Line 11c. Be sure to include all of the necessary information, such as the total amount of qualified wages and the number of employees.</p><h3>Step 5: Wait for approval</h3><p>After filing Form 941, you'll need to wait for approval from the IRS. This can take several weeks or even months, so be patient.</p><h2>Conclusion</h2><p>The Employee Retention Credit can be a valuable tool for businesses looking to keep their employees on payroll during the pandemic. While the application process can be complex, it's worth the effort to take advantage of this tax credit. If you need help navigating the ERC application process, consider working with a tax professional.</p><p>Ready to find out more about how to qualify for ERC? <a data-mce-href="https://ercassessments.com/doesmybusinessqualifyforerc" href="https://ercassessments.com/doesmybusinessqualifyforerc" data-mce-selected="inline-boundary">Start here</a>!</p>

The Employee Retention Credit (ERC) Application Process From Start to Finish

<p>The Employee Retention Credit (ERC) has been a key tool for businesses to retain their employees during the pandemic. As the economy recovers and we move towards a post-pandemic world, there are new considerations that businesses should keep in mind when it comes to the ERC. In this blog post, we will explore these new considerations and how they might impact your business in 2023.</p><blockquote><p>Did You Know? You Can Get Help With ERC Filing? You Can! <br><a data-mce-href="https://bottomlinesavings.referralrock.com/l/CORYDUGAN68/" href="https://bottomlinesavings.referralrock.com/l/CORYDUGAN68/" target="_blank" rel="noopener">Find Out How</a>!</p></blockquote><h2>What is the Employee Retention Credit?</h2><p>The Employee Retention Credit is a refundable tax credit that was introduced as part of the CARES Act in 2020. It was designed to provide financial relief to businesses that were impacted by the pandemic and had to either suspend or reduce their operations. The credit is equal to 50% of qualified wages paid to employees, up to a maximum of $10,000 per employee. Businesses can claim the credit on their quarterly employment tax returns.</p><h2>Changes to the Employee Retention Credit for 2023</h2><h3>Eligibility Criteria</h3><p>One of the biggest changes to the Employee Retention Credit for 2023 is the eligibility criteria. In order to qualify for the credit, businesses must now demonstrate a decline in gross receipts of at least 20% in the current quarter compared to the same quarter in 2019. This is a higher threshold than in previous years, which required a decline of at least 50%.</p><h3>Maximum Credit Amount</h3><p>Another change to the ERC for 2023 is the maximum credit amount. The credit is now limited to $7,000 per employee per quarter, which is lower than the previous maximum of $10,000. This means that businesses can claim a maximum of $28,000 per employee for the entire year.</p><h3>PPP Loans</h3><p>Businesses that received a PPP loan in 2020 or 2021 are now eligible for the Employee Retention Credit, but there are some restrictions. For example, businesses cannot claim the credit for wages that were paid with PPP loan proceeds that were forgiven. Additionally, businesses cannot claim the credit for the same wages that were used to calculate the Shuttered Venue Operators Grant.</p><h2>How Can Businesses Prepare for the Changes?</h2><p>Now that we know what the changes to the Employee Retention Credit are for 2023, it's important for businesses to start preparing. Here are some steps that businesses can take:</p><ul><li>Review your gross receipts for the current quarter and compare them to the same quarter in 2019.</li><li>Ensure that you have accurate records of all qualified wages paid to employees.</li><li>Consider consulting with a tax professional to ensure that you are claiming the credit correctly.</li><li>Stay up-to-date on any additional changes to the ERC that may be announced in the future.</li></ul><p>By taking these steps, businesses can ensure that they are prepared to claim the Employee Retention Credit in 2023 and maximize their financial relief.</p><h2>Conclusion</h2><p>The Employee Retention Credit has been a valuable tool for businesses during the pandemic, and it will continue to be important in a post-pandemic world. However, with the changes that have been made for 2023, businesses need to be aware of the new eligibility criteria, maximum credit amount, and restrictions for PPP loan recipients. By preparing now, businesses can ensure that they are able to claim the credit correctly and receive the financial relief that they need.</p><blockquote><p>Find Out If Your Business Qualifies Before It's Too Late!</p><p><a data-mce-href="https://bottomlinesavings.referralrock.com/l/CORYDUGAN68/" href="https://bottomlinesavings.referralrock.com/l/CORYDUGAN68/" target="_blank" rel="noopener">Start Here</a></p></blockquote><figure id="figure-hgbr8uvwzlmcyc9bo"><img id="hgbr8uvwzlmcyc9bo" src="https://images.unsplash.com/photo-1563457012475-13cf086fd600?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMXx8ZW1wbG95ZWUlMjByZXRlbnRpb24lMjBjcmVkaXR8ZW58MHx8fHwxNjk0Mjc1OTcxfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="employee retention credit" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1563457012475-13cf086fd600?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyMXx8ZW1wbG95ZWUlMjByZXRlbnRpb24lMjBjcmVkaXR8ZW58MHx8fHwxNjk0Mjc1OTcxfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure>

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