You’ve probably heard about the new law that provides direct payments to eligible individuals. But what does the law provide to businesses?
Learn about the recent tax law changes affecting the employer retention tax credit, potential benefits, and more
On December 27, 2020, the Consolidated Appropriations Act, 2021 (CAA, 2021) was signed into law by the President. The CAA, 2021 is the fourth major relief legislation enacted in response to the coronavirus pandemic. Some of the provisions grant retroactive relief to 2020.
The Employee Retention Credit is a refundable tax credit against payroll taxes equal to 50% of qualified wages a qualifying employer pays to employees after March 12, 2020, and before January 1, 2021. The maximum qualified wages per employee is $10,000, Therefore, the maximum credit per employee is $5,000. The credit is available to all[ … ]
With the passing of the Further Consolidated Appropriation ACT of 2021, the Work Opportunity Tax Credit was extended from December 31, 2020 through December31, 2025. These credits are based on hiring certain targeted individuals including veterans and those who receive food stamps. The tax benefits are significant – the typical yield is a $2,400 credit[ … ]