Considerations for the Employee Retention Credit
Created and introduced as part of the CARES Act in 2020, the Employee Retention Credit (Credit) was implemented to encourage employers to keep their employees on the payroll during the height of the pandemic. The Credit was made available to employers that pay qualified wages to their employees. However, since 2020, the Credit has undergone several changes which have only increased uncertainty surrounding the Credit.
This uncertainty combined with the short timeframe between creation and implementation and the lack of IRS guidance has caused many questions to be raised about the rules to apply for and receive the Credit. As a result, some “credit incentive” companies are attempting to take advantage of the situation. If you have been approached by a company offering to calculate the Credit for you in exchange for a large percentage, be wary. While not all of these companies are seeking to mislead you or cause you harm, it is always a good idea to proceed cautiously. Contact your trusted CPA or financial advisor before making any decisions concerning the Credit and your business.
If you need guidance or don’t know where to turn, contact BMSS at (833) CPA-BMSS and we can point you in the right direction. We’ll take the time to understand your unique circumstances to determine a path forward and help bring you peace of mind.