The Employee Retention Tax Credit (ERTC) was enacted as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to support small business owners through the government-imposed shutdowns. By claiming the ERTC for 2020 and 2021, employers can receive up to $26,000 per full-time employee in the form of a direct payment from the IRS.
Are you eligible to qualify?
You likely qualify if you own a small business and experienced a reduction of revenues, or any of the following between 2019-2021
Businesses that were incorporated after 2/15/2020, can qualify as a Recovery Small Business (RSB) and can claim up to $50,000 in credits for 2021 Q3 and 2021 Q4.
The R&D tax credit is a permanent U.S. federal and state tax credit used to encourage the U.S. businesses to keep highly technical jobs within the U.S. and promote further innovation. The R&D tax credit provides a tax savings opportunity for businesses of any size to offset income tax liabilities and quarterly payroll tax, if eligible.
R&D Tax Credit Benefits
Rightly so. There are many other considerations and exemptions, including what constitutes qualified wages, how to calculate health expenses, and what documentation the IRS requires for this very beneficial and wide-ranging refund. Make sure you work closely with your tax advisor as there have been several iterations of this tax credit since its introduction.