ERTC is an important topic for small and medium sized businesses. Tricia Petteys, Co-Founder and COO of Payroll Vault shares recent updates on the money that the government is rewarding businesses for keeping employees during the pandemic.
As part of Payroll Vault’s commitment to providing businesses with knowledge on the latest legislation pertaining to their operations, here are the most frequently asked questions regarding the Employee Retention Tax Credit. If you have any questions, please reach out to us for more specific information.
Why am I just hearing about the Employee Retention Tax Credit?
How do I qualify for the retroactive 2020 credit?
How do I qualify for the 2021 ERTC credit?
Will this affect my PPP Loan forgiveness?
How is the ERTC calculated retroactively for 2020?
How is the ERTC calculated for 2021?
Why am I getting this credit?
Will we need to pay taxes on this refund?
How will I receive the refund?
When can I expect to receive the refund?
When does Payroll Vault collect their fee?
Is this legitimate legislation?
Was the ERTC extended for all quarters in 2021?
I am a new business who received both rounds of PPP loans. Can I still take advantage of the ERTC?
I started my business in 2020, but didn’t close or have reduced revenue. What credits are available to me?
As part of the American Rescue Plan Act (ARPA), new businesses who started after February 15th 2020 are able to take advantage of the Employee Retention Tax Credit (ERTC) too. The wage and credit calculations will be the same, but the cap for the credit is $50,000 for the 3rd and 4th quarters of 2021.