Description

While not technically a funding program, the Employee Retention Tax Credit (ERTC) can provide cash payments to businesses. This is not a loan. It is a direct cash payment that the business can use in its operations. Depending on the business, the amount of the ERTC can be sizeable—potentially up to $5,000 per employee for 2020 and $21,000 per employee for 2021. If your business did not receive this credit for 2020, you still may be able to file retroactively. Additionally, some businesses that started operations in 2020 may also be eligible for the ERTC.

Eligibility

The rules and procedures for filing for the ERTC can be complex and are beyond our ability to summarize here. Most businesses will require professional assistance to complete their filing. Not all accounting/payroll firms will provide this service. Generally, we have seen that those firms that do complete ERTC filings will charge a fee equal to a percentage of the ERTC. Some firms will charge the fee upon completion of the filing, while others will wait for their fee payment until the business receives the refund from the IRS. It has been taking the IRS quite some time to issue ERTC checks, so this difference can be significant.

Funding Amount

Up to $5,000 per employee for 2020 and $21,000 per employee for 2021.

Deadline to Apply:

Consult your tax or payroll professional.