On this episode, Karen talks with Tricia Petteys, COO/Co-founder of Payroll Vault Franchising, about the Employee Retention Tax Credit and how it can help your small business financially impacted by COVID-19. Overshadowed by the PPP loan program, the lesser-known and used Employee Retention Tax Credit was offered through the CARES act in 2020. Earlier in 2020, businesses were not eligible if they received a PPP loan, so almost no one took advantage of ERTC. However, with the updated Consolidated Appropriations Act that passed in December 2020, the government will allow businesses who received PPP loan funds to apply for the ERTC. So, get your pencils and notebooks out because Tricia outlines the Employee Retention Tax Credit major highlights, qualifications, and why it is essential for the operation and maybe your company’s survival.
Key Takeaways
– ERTC encourages businesses to keep employees on their payroll.
– ERTC is a refundable tax credit and is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
– Bars and Restaurants almost always qualify.
– Engage with a payroll or tax professional to take a look at your payroll journals, taxes paid, and your PPP and your forgiveness window ASAP.
– Consult with a professional about what 2020 and 2021 business revenue counts and what doesn’t.
– Confirm with your CPA or professional payroll company to see if your company and which of your employee can qualify for ERTC.
Resources
Tricia Petteys – LinkedIn | Facebook | Youtube
Payroll Vault – Website | Blog
IRS – FAQ Page