The Employee Retention Credit is one of the dozens of pieces of legislation passed during COVID. The tax credit program was created to save money for employers who kept their employees paid during the pandemic. Although the program itself ended during 2021, the credit can still be refiled to save thousands.
Who can apply, well any business that paid their employees while suffering through COVID. Not all businesses saw losses during the pandemic, but to those that did this credit can offer thousands in savings. Other small criteria that need to be met are having qualified wages and being operated in the U.S. If these simple conditions are met, there’s a lot of money waiting.
In terms of how much, well that varies. It varies depending on how many employees a business has. The more employees, the harder it is for the credit to apply. It also depends on how much the employees were paid, how long they were working, etc. In total, this can amount to $26,000 per employee over COVID. Although more realistically employers can expect somewhere in the range of a few thousand.
And that’s the employee retention credit. It’s not often that the government offers what is essentially free money to business owners. It’s even less often that that same money can be accessed years later. So for any business owners that can, make sure to take advantage before it’s too late.