Employee Retention Credit
A business with employees that was subject to government regulations brought about by the COVID-19 pandemic or that suffered economic losses in 2020 or 2021 as a result of COVID-19 closures is eligible to receive the Employee Retention Tax Credit (ERTC).
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), ERTC was created to provide businesses with a refundable credit that can be claimed on wages paid to employees. ERTC was devised as an incentive for employers to retain employees on their payrolls when the pandemic began.
Employers should know that ERTC is a refundable payroll tax CREDIT, not a loan. It entitles employers to reductions to payroll taxes or cash refunds. Notably, the ERTC can be applied retroactively to March 12, 2020. This means that you still have the opportunity to claim funds through the federal government to help your business as it continues to navigate this unprecedented pandemic.
PPP Loan Forgiveness Checklist
With everything from the “Interim Final Rules” to changing regulations and requirements, keeping track of how you can use your PPP loan funds—and what you need to have your loans forgiven—is a full-time job. We began compiling the list of documentation needed to ensure our clients were prepared, whether they need information now or later when they go to apply for forgiveness. By staying on top of the documentation, the process of applying will be that much easier. We decided to offer our checklist to all small business owners as our way of contributing to the greater good.
Should you have questions about either of these COVID-19 resources, please email Katy@kjbookservices.com and we will do our best to assist you.