Employee Retention Tax Credits

You Can Still Qualify For Employee Retention Tax Credits 

Don't Leave Money on the Table

The original Employee Retention Tax Credit (ERTC) was a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. 

However, the American Rescue Plan Act (ARPA) expands the employee retention credit. The credit still allows employers to claim credit for paying qualified wages to employees, but with ARPA now in place, the credit has been extended through the end of 2021. 

ARPA also expanded the definition of covered employers.  IRS Notice 2021-23 explains the changes to the Employee Retention Credit for the first two calendar quarters of 2021.

Important changes to the ERC include:

• A prospective credit increase from 50% of up to $10,000 of qualified wages annually to 70% $10,000 of qualified wages per quarter starting January 1, 2021
• Public universities and hospitals are now considered eligible employers
• The ARPA extends the coverage of the ERC until the end of 2021

Workforce PayHub has been working hard and dedicating its resources to help companies determine their eligibility and attain credits from the ERC. Our experienced team is full of experts on calculating potential credits and can help you maximize your credit, like many before you. 

Schedule a free consultation with us today and start learning how Workforce PayHub can help prevent you from leaving money on the table!