As you are undoubtedly aware if you are a business owner, the COVID-19 pandemic related lockdowns caused great headaches for businesses, especially smaller ones who suddenly had no customers and still had to pay employees. The Employee Retention Tax Credit, a provision of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was recently added to help businesses recover from their losses in paying non-working employees.
As detailed in this article on the NJCPA website, the Employee Retention Tax Credit offers a credit of 50 percent of up to $10,000 in wages paid between March 12, 2020 and January 1, 2021. The Credit for employers includes covering employer-provided health care plans, the employee shares of Social Security and Medicare taxes, and other costs.
Why Your Business May Be Eligible For The Employee Retention Tax Credit
With the lockdowns being more restrictive in PA and NJ than in many states, a large number of businesses were forced to suspend their trades and businesses. State government ordered lockdowns restricted commerce, travel and group meetings during the COVID-19 pandemic. Many businesses, including possibly your own, did everything they could to keep employees on the payroll for the return of normalcy.
In the article, you’ll note the either/or provision that states that a business is likely eligible for the credit if a) they experienced a full or partial suspension of operations due to lockdowns, or b) they saw a significant decline in gross receipts due to limitations of commerce. Again, the lockdowns were more restrictive in NJ and PA than most states, and as a result your business is more likely eligible for the Employee Retention Tax Credit.
As part of the overall assistance we provide to businesses in the greater Philadelphia area and South Jersey, Momentum Advisors is here to help you apply for the this special tax credit and collect your credit if your business is eligible. Click here to fill out our online application, and hopefully you can receive the tax relief your business deserves.