Recent updates to the employee retention tax credit expanded its value, even to startups and PPP borrowers.
Find out now if you qualify. Clarus R+D makes it easy to claim.
Need to know: ERTC
The employee retention tax credit under the CARES Act is a refundable tax credit that encourages businesses to keep employees on their payroll. Game-changing updates to the ERTC were finalized by the Consolidated Appropriations Act in December 2020 and the American Rescue Plan Act in March 2021.
Companies that received PPP loans may now also claim the ERTC. Prior to this legislation, companies were not permitted to benefit from both. The legislation also extended and liberalized nearly every aspect of the credit through 2021.
Who is eligible?
Companies qualify for the ERTC if they (1) had a decline in quarterly revenue, or (2) were fully or partially shut down due to governmental orders, or (3) are a startup that began a new trade or business.
What is it worth?
For 2020, the ERTC is worth up to $5,000 per employee per year. In 2021, companies can now get up to $7,000 per employee per quarter.