The ERTC program eligibility criteria were expanded in 2023
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ATTENTION TIME SENSITIVE INFORMATION
*Important* Employee Retention Credit (ERC)
ends April 2025
Employee Retention Tax Credit (ERC or ERTC) –
ends in April 2025.
The Employee Retention Credit is a refundable payroll tax credit created under the CARES Act that rewards businesses by refunding up to $26,000 for each W-2 employee that they kept on their payroll during the pandemic.
Download PDF of Updated U.S. Congressional Report Compiled by True Aafia Certified Client Service
Agent Mark K. Hardin
SECURE THE FUTURE OF YOUR BUSINESS.
When the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) was signed into law on March 27, 2020, it included two programs to assist businesses with keeping workers employed:
1) the Payroll Protection Program (PPP) and
2) the lesser-known Employee Retention Tax Credit (ERC or ERTC)
Revised by Congress and Mandated for Distribution,
By the IRS in the 2nd Fiscal Quarter 2023.
Now Here, are the differences:
PPP is administered by the Small Business Administration. ERTC is administered by the Internal Revenue Service.
PPP funds are based on 2.5 months of payroll. A minimum of 80% of the funds must be used on payroll to be eligible for forgiveness. PPP funds are not taxable as revenue and you may still take deductions for the payroll covered by PPP.
Currently available ERTC funds are credits (or refunds) for a percentage of payroll in each quarter for which you qualify. There are very specific rules for determining eligibility by quarter, and the dollars that can be claimed for each employee are limited.
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