Simply...Garnett, Kansas
There might be some confusion about a little-known tax credit, the Employee Retention Tax Credit or ERTC. That’s a shame because it is potentially more powerful and useful than the Paycheck Protection Program, which saved over 128,000 jobs in Johnson County alone last year! Here are the details:
- The tax credits can pay up to $7,000 per employee per quarter for the first two quarters of 2021
- You can have up to 500 employees in order to participate – 98% of employers qualify
- If you were shut down due to COVID or are seeing at least a 20% drop in revenue in the first or second quarter of 2021 (vs. the same quarters in 2019), you should qualify
- This year, you can participate in the PPP and the ERTC at the same time!
- You can apply starting with Q2, so you have some time to work with your accountant or payroll provider.
- You can even request the credits in advance with IRS Form 7200.
Part of the confusion comes from the fact that the credits are to your payroll deduction accounts (FICA and Medicare) and so many employers are thinking, perhaps, that they would only get 70% of their contributions. These are fully refundable tax credits, however, so it really doesn’t matter how much has been set aside for your FICA contributions – the amount is based upon payroll itself, up to $10,000 per employee, per quarter (70% of $10,000 brings us to the $7,000 per quarter max.). If the credits are more than your withholding deposits, you still get the full amount of the credits.
Want more common sense answers on what may seem complicated? HERE IT IS
WHO IS ELIGIBLE?
Restaurants, bars and other businesses impacted by Covid-19.
The American Rescue Plan Act is providing the Restaurant Revitalization Fund to assist hospitality industry businesses. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
CLICK HERE to learn more, see if your business qualifies, and get help with your application.
Other resources are available through the Small Business Administration. CLICK HERE to learn about those resources.
ACDA Office - Inside Garnett City Hall
131 West 5th Avenue, P.O. Box H
Garnett, Kansas 66032 USA
GREAT NEWS: EMPLOYEE RETENTION TAX CREDIT
Covid-19 Restaurant Revitalization Funding Available
Your business connection for Garnett and Anderson County, Kansas.
CDBG-CV