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5 Reasons Why You Should Claim the Employee Retention Tax Credit

Jared DeValk • Sep 09, 2023

5 Reasons Why You Should Claim the ERTC

The Employee Retention Tax Credit (ERTC) is a financial incentive for eligible employers to retain their employees during challenging economic times, such as the COVID-19 pandemic. Here are five reasons why you should consider claiming the ERTC:


Reason 1: Financial Relief

The ERTC provides eligible employers with a tax credit of up to $5,000 per employee for 2020 and up to $28,000 per employee for 2021[2][6]. This financial relief can help offset the impact of the pandemic on businesses and their employees.


Reason 2: Eligibility Criteria

The eligibility criteria for the ERTC have been expanded to include more businesses[4][6]. Eligible employers must have experienced a significant decline in gross receipts or a full or partial suspension of operations due to government orders related to COVID-19[2][3][4][5][6]. This means that more businesses may be eligible for the credit than previously thought.


Reason 3: Retroactive Application

Eligible employers can apply for the ERTC retroactively if they missed claiming it in previous quarters[3][6]. This means that businesses can still benefit from the credit even if they did not claim it initially.


Reason 4: Expert Assistance

Navigating the process of claiming the ERTC can be confusing, especially for small business owners. However, there are experts available who can help businesses claim the credit[1][2]. These experts can provide guidance on eligibility requirements, application procedures, and maximizing the benefits of the credit.


Reason 5: Compliance with IRS Guidelines

By claiming the ERTC, eligible employers can ensure compliance with IRS guidelines and avoid penalties and interest charges[6]. It's important to stay updated with the latest IRS guidance and consult with tax professionals to ensure compliance with eligibility requirements and maximize the benefits of the credit[1][2][4][5][6].


In conclusion, the Employee Retention Tax Credit (ERTC) provides financial relief to eligible employers during challenging economic times. By understanding the eligibility criteria, retroactive application, expert assistance, and compliance with IRS guidelines, businesses can take advantage of this financial incentive to retain their employees and offset the impact of the pandemic.


If you’d like to learn more about the Employee Retention Tax Credit, check out ERTC Pays
ERTC FAQ.

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