How the Employee Retention Credit Can Benefit Your Business
As a business owner, you know how important retaining talented and valuable employees is. However, unforeseen circumstances can make it challenging for businesses to keep their workforce intact. This is where the Employee Retention Credit (ERC) comes in - a tax credit that can help you keep your employees and save your business money.
BC CPA & Consulting offers a wide range of tax compliance and consulting services, including guidance on the ERC. Here's what you need to know about this valuable tax credit.
What is the Employee Retention Credit?
The ERC is a refundable tax credit that was created to help businesses impacted by unforeseen circumstances. It was introduced in the Coronavirus Aid, Relief, and Economic Security (CARES) Act and has been extended and expanded by subsequent legislation.
The credit is designed to encourage businesses to keep employees on their payroll by providing a tax credit of up to $7,000 per employee per quarter. This credit can be used to offset payroll taxes or be claimed as a refund.
Who is eligible for the Employee Retention Credit?
To be eligible for the ERC, your business must have experienced one of two situations:
Full or partial suspension of operations due to unforeseen circumstances
A significant decline in gross receipts (50% or more) in any quarter compared to the same quarter in the previous year
If your business meets either of these requirements, you may be eligible for the ERC.
How can BC CPA & Consulting help?
At BC CPA & Consulting, our team of experienced certified public accountants can help you determine if your business is eligible for the ERC. We can also help you calculate the amount of credit you may be able to claim and assist you in filing the necessary paperwork.
In addition to ERC guidance, we offer a wide range of services to help businesses navigate the complexities of tax compliance and consulting. From new business startup advisory to financial and business advisory and outsourcing, transaction advisory, bookkeeping, and accounting, we have the expertise you need to succeed.
The Employee Retention Credit can provide much-needed relief to businesses struggling to keep their workforce intact during unforeseen circumstances. If you think your business may be eligible for the ERC, please contact BC CPA & Consulting today. Our team of experienced certified public accountants is here to help you navigate the complexities of the tax code and find solutions that work for your business.