Claiming for Employee Retention Credit? Here’s the Documentation Needed
Businesses that lost money due to the COVID-19 pandemic and resulting government shutdowns may be eligible for tax relief through Employee Retention Tax Credits. The Infrastructure Investment and Jobs Act ended these tax credits in November 2021. However, businesses can still claim the credit on 2021 tax returns and file an amended return for 2020. Here is what affected companies need to know about filing.
What Is the Employee Retention Credit?
Congress created the Employee Retention Credit under the Coronavirus Aid, Relief, and Economic Security Act to entice employers to avoid layoffs during the coronavirus pandemic in 2020. Initially, the employee retention tax credit was worth 50% of qualified employee wages, limited to $10,000 for any one employee. The maximum credit was $...