Internal Revenue Service (IRS) has just announced new guidance on retroactive changes to the employee retention credit, expanding its availability and wage limitation to $10,000 per employee per quarter. The credit is designed to encourage businesses to keep employees on payroll and is equal to:
- 50% of qualified wages paid from March 13, 2020, through December 31, 2020; and
- 70% of qualified wages paid from January 1, 2021, through June 30, 2021.
Businesses can reduce required deposits of payroll taxes withheld from employees’ wages by the credit amount or request an advance of the credit. Additionally, this credit is not limited by other relief tax credits or payments, such as payroll tax deferral and PPP funds, but not for the same wages.
Our payroll representatives are on hand to assist eligible businesses to claim and substantiate the claim for the credit, potentially putting thousands of dollars back into your business.