A COVID Tax Credit Businesses Can Still Qualify For
COVID-19 and the pandemic brought on struggles for countless industries and businesses across the world. Many nations, in response, passed legislation creating tax credits, halting interest rates, and many other changes aimed at helping businesses. While most have long since passed, some are still active today. The employee retention credit is one credit that many businesses can still take advantage of today.
The employee retention credit is a refundable tax credit that was meant to encourage employers to keep employees paid across the pandemic. It applies for the 2020 and 2021 tax years and within one year can save $5,000 per employee. In 2021 this program ended, but employers can still file to receive funds today.
Of course not every business that was active during COVID will qualify, but many do. The three criteria for qualification are as follows. One, the business experienced losses of revenue due to COVID-19. Two, the business is operating within the U.S. Three, the business was shut down in some capacity, be that in hours active or delivery halting. Or four, the business qualified as a Recovery Startup Business in 2021.
If any of these apply to a business, and that business qualifies their wages, they qualify for the credit. It’s not often that these programs are extended to apply past their end date. So for those businesses that managed to keep employees paid during COVID, take advantage before it is too late.