Employee Retention Tax Credits (ERTC)
What should you know about the Employee Retention Tax Credits (ERTC)?
Many business owners are working harder than ever to make sure they can maintain staffing levels during the COVID-19 Pandemic. The Federal Government has passed several relief provisions aimed at maintaining and paying employees during this difficult time. These provisions can be tricky to unravel, but your SS&C team members are here to help you.
In this post we will focus on the Employee Retention Tax Credits in both the CARES Act and the COVID-related Tax Relief Act. This payroll tax credit is designed to support businesses that shut down or had qualifying declines in revenue during 2020 and into 2021, when compared to the same timeframes in 2019 (pre-pandemic).
These two pieces of legislation are extensive, and details continue to be rolled out. This credit is potentially available to you if you paid qualifying wages to employees in 2020 and during the 1st two quarters of 2021. And, with the recent modifications to the COVID tax relief provisions passed in December, you may be eligible to claim the credits even if you had a Paycheck Protection Program (PPP) loan.
Below is a brief overview of this credit.
One example of a specific detail is, if you have received a PPP draw 2 loan, there may be critical steps to be taken within the forgiveness process that would allow you to utilize ERTC credits. Without these steps, the credits may not be available. Contact SS&C so that we can help.
As mentioned, this is a brief overview and “the devil is in the details.” We are here to help you with those details and determine your eligibility for this credit and in calculating the correct payroll tax credits available to you. Please reach out to your Advisor at SS&C Solutions to ensure that you are seizing this opportunity while keeping people employed during this challenging time.