We’ve written before about how the government has supported small businesses like ECT since the beginning of the Pandemic. Did you know… the support continues?
ECT services has qualified for the federal Employee Retention Credit. Based on 2021 revenue performance, this credit works to support small businesses who want to be sure they can retain their talented workforce even during the hardship of pandemic, supply chain challenges, and now a war in the world.
In more details, the Employee Retention Tax Credit (ERC) is a refundable tax credit designed to reward business owners for retaining employees throughout the pandemic. The ERC is available to both small- and mid-sized businesses. It was signed into law as part of the CARES Act and was expanded in 2021.
In essence, if your company had lower revenue in 2021 for the same time period in 2020, your company may qualify. We were fortunate that we qualified for two quarters. We filed for it in February and will receive the cash in September. The only downside is we’ll pay taxes on the money before receiving the money, but it’s worth it.
According to the IRS, the credit was designed to make it easier for businesses that, despite challenges posed by COVID-19, chose to keep their employees on the payroll. Read more about it here.
ECT Services is not a financial institution or a financial advisor by any stretch. But we’re still all in this together, right? If one small business can take advantage of an offering from the government, why not share the knowledge. Am I right? Be sure and pass along information you’ve learned – there’s always more we can learn from each other.