Employee Retention Credits Are Being Cancelled Finally, after the tragic year that 2020 was, things were starting to look up again. Businesses were reopening and hiring people. The economy had finally started to show signs of recovery and strength after a year of stagnation and recession. The summer of 2021 was the start of making up for that lost year. The Roaring 20s were beginning at last. One of the programs that Congress passed to help with the recovery was the Employee Retention Credit. A valuable, albeit confusing, tool we could use to rebuild our businesses. EmployerIncentives has helped businesses

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The CARES Act and Consolidated Appropriations Act, 2021 allows eligible businesses to claim an Employee Retention Credit (ERC) to encourage businesses to keep employees on their payroll. Subsequent legislation, like the Taxpayer Certainty and Disaster Tax Relief Act of 2020, amends and extends the benefits of the ERC (along with the availability of advance payments), has provided more opportunity for businesses to capitalize on the relief funding being provided. The original CARES act was written to reimburse 50% of the first $10k in employee wages and qualified health plan expenses that were earned between March 12th and January 1st 2021.

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The Work Opportunity Tax Credit Program (“WOTC”) and the Empowerment Zone Program (“EZ”) will continue to pay hiring tax credits through 2025. The Indian Employment Tax Credit (“IETC”) was extended only through the end of 2021. If you’re taking advantage of these programs, great. If not, now’s a good time to get started. On average 15% of the people you’ll hire next year will qualify for WOTC and the average credit is around $1,500 (these are our company’s averages after 20 years of helping companies administer this labor-intensive program). Here’s the math: number of hires in 2021 times 15% times

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Four Reasons to Hire Veterans A persistent barrier to considering veterans for employment is perception. Notably in the movies or the news, a distorted view of veterans exists. This can be very dramatic, but it can stigmatize members of an organization that include over 2 of the most highly trained and adaptable workers possible. This stigmatization has the unfortunate result of making it harder for veterans, the very people who defend this nation with their lives, to find employment after their service has concluded. Ken Brice was a veteran when he started EmployerIncentives, and he recognized the value of hiring

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According to a News Release by the Department of Labor dated September 17th, new Unemployment Rates still remain very high with states reporting that 860,000 workers filed New applications for Unemployment claims. This was a reduction from the previous week (893,000), and lower than the rolling 4-week average, but this is still over 4 times higer than pre-pandemic levels of unemployment benefits. Pre-pandemic levels of new unemployment claims per week averaged at approximately 200,000. The total number of people claiming unemployment benefits for the week ending August 29th was over almost 30 million people, which is over 20 times higher

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Trying to understand the connection between the Employer Retention Credit (where an employer would get 50% of the first $10,000 they pay someone to keep them on payroll), the Work Opportunity Tax Credit (up to 40% of the person’s first year wages, depending on the category), and the Payroll Protection Program which provides small business loans to employers to keep their employees on the payroll can be a daunting task. Good news though, we have the best minds on it and have found that WOTC and ERC can work together, provided you don’t use the same earnings. Example: John started

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WASHINGTON — The Treasury Department and the Internal Revenue Service today launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. The credit is available to all employers regardless of size, including tax-exempt organizations. There are only two exceptions: State and local governments and their instrumentalities and small businesses who take small business loans. Qualifying employers must fall into one of two categories: The employer’s business is fully or partially suspended by government

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Coronavirus Leads to New Tax Saving Measures on the Horizon Ken Brice here.  As someone who’s involved with companies to help reduce their tax bite for over 20 years, I wanted to bring you up to speed on a couple of tax saving opportunities that are developing now and are important to companies in these tough times. As all companies are dealing with this invisible enemy, I wanted to make sure that you know that there are more tools in your money toolbelt. The first tool is one that we are hopeful will allow companies to recoup the cost of

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There appear to be a number of challenges ahead of getting WOTC permanently added to the tax code.  The below is from Paul Suplizio, President of the WOTC Coalition. January 28, 2020 Renewing WOTC will be hyper-challenging this election year, not only because we’ll be lobbying candidates face-to-face at every opportunity (congresspersons and senators are more accessible during an election campaign), but also because we’ll have to confront the issue of the Federal government’s running trillion dollar annual deficits now. The deficit will be the major factor in every bill that costs money, which means encountering more arguments to retrench, and more

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