lthough it’s only October
and Christmas is a few
months away, I still come
bearing gifts. What’s in my Financial Lifestyle toolbox this month? Putting money in your business bank account or the business bank accounts of family, friends or the company you work for. What am I talking about? The ERC Tax Credit.
I am always mindful of making sure you as readers have a tool that is easily digestible and easy to implement. The ERC has some specific rules that may seem “complicated” but I will try to break down some of the basics so you can have a better peek into what your next steps could be.
Let’s get started.
To provide economic relief to businesses and individuals during the Coronavirus pandemic, the CARES (Coronavirus Aid, Relief and Economic Security) Act was signed into law in March 2020. This $370 billion stimulus package makes funding available to small companies, which can be used to allow certain employers who retain employees during the crisis, to claim a tax credit. This tax credit is known as the Employee Retention Credit.
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Photo Credit Israel Andrade