The Employee Retention Credit is a fully refundable tax credit for employers equal to 50 percent of qualified wages (including allocable qualified health plan expenses) that Eligible Employers pay their employees. The maximum amount of qualified wages taken into account with respect to each employee for all calendar quarters is $10,000, so that the maximum credit for an Eligible Employer for qualified wages paid to any employee is $5,000. Many clients that were unable to obtain a Paycheck Protection Program loan will consider accessing Employee Retention Credits. This program is a detailed analysis of the Employee Retention Credit that will provide CPAs and other financial professionals with a comprehensive understanding of this credit so that they will able to intelligently advise their clients.
- What is the Employee Retention Credit and who is an eligible employer?
- What is a “significant decline in gross receipts”?
- How the Employee Retention Credit becomes fully refundable
- When an employer’s trade or business is fully or partially suspended
- How a client can claim the Employee Retention Credit
- The Employer Retention Credit’s interaction with other credit and coronavirus pandemic relief provisions
- Determining qualified wages and allocable qualified health plan expenses
- Utilizing Form 7200 to claim advances of refundable credits, including the Employee Retention Credit
- How the aggregation rules work and when they hurt or help your clients’ chances of qualifying
- Advise clients with respect to claiming the Employee Retention Credit
CPAs and other financial professionals advising clients about the Employee Retention Credit