The COVID-19 pandemic brought unprecedented challenges to businesses of all sizes. One of the government’s measures to help companies survive the lockdowns and economic aftermath is the retention credit, which incentivizes employers to keep employees on the payroll. Start a search today to explore the full potential of this tax credit for your business in 2023.
What is the Retention Credit?
The retention credit is designed to help employers keep their employees on the payroll during a time of economic uncertainty. It’s a tax credit available to eligible employers who continued to pay their employees during the COVID-19 pandemic.
Exploring the Benefits
The credit varies depending on the time period for which the credit is being claimed, so it’s important to do your research to find out how much you can benefit.1
That said, eligible employers can receive up to $26,000 per employee, which can be applied against their payroll taxes.2 Additionally, despite the expiration of the retention credit program in 2021, eligible businesses still have the opportunity to take advantage of this valuable tax credit into 2024 and in some cases, even 2025.
Eligibility for the Retention Credit
Before applying for employee retention credit online, an employer must meet certain requirements, such as a significant decline in gross receipts during the pandemic.3 It’s important to do your research and make sure you’re eligible before applying. Fortunately, all of this information is online.
Maximizing the Employee Retention Credit Program
To maximize the potential of the retention credit, it is important to understand the eligibility requirements and to keep detailed records of the wages paid to employees during the pandemic. It is also important to be aware of the different rules and regulations that apply to the credit, as well as the various forms and reports that must be filed with the government. Luckily, you can find this information by searching online. Working with a tax professional can be helpful too.
Learn More About the Retention Credit Today
The retention credit is an amazing resource that can provide much-needed relief to businesses during the COVID-19 pandemic. By researching the eligibility requirements, keeping detailed records, and working with a tax or finance professional, businesses can maximize the potential of this credit and ensure that they are in the best position to weather any economic downturn.
Whether you are a small business owner or the head of a large corporation, the retention credit can be an essential support for your business in 2023 and beyond.