There are lots of missed opportunities that every business has to deal with in their time of operation. Countless government programs, tax credits, and local savings that will simply never be applied or even known about. The Employee Retention Credit is a perfect example of one of these programs. The government created COVID relief tax credit was created in 2020 to help businesses keep their employees paid.
The credit, which is applicable for the 2020 and 2021 tax years, ended at the start of 2022. Yet even today, through a simple refiling, there are thousands of dollars waiting to be taken advantage of. And to make things even better, the steps to taking advantage are incredibly easy. First, did the business suffer due to COVID? Second, did the business keep employees paid and qualify those wages? And third, is the business U.S operated?
If the answer to all these questions is yes, then refiling can get businesses up to $26,000 in savings per employee. This can be done individually, through an accountant, or even through a credit league. There are organizations that will specifically help with claiming credits such as and similar to the Employee Retention Credit. Businesses suffered through COVID, they should make sure to take advantage of anything that rewarded them for that.