NY/NJ Estate Taxes

This is an incredible opportunity for business owners to find some relief from COVID-19 losses. However, you should speak with a tax professional regarding maximizing your ERC, as it is interrelated to other programs.

What you should know:

This broadly-based refundable tax credit encouraged employers to keep employees working, but the credit changed from year-to-year.

First

The credit is available to employers with 500 or less employees with only two exceptions.

Second

You must meet one of two alternative tests, calculated quarterly.

Either—The employer’s business was fully or partially suspended by government order due to COVID-19 during the calendar quarter.

OR—In 2020 your gross receipts were less than half of the comparable quarter in 2019. Gross receipts vary by year.

Calculating your credit

We will help you determine your qualifying wages.

The definition varies depending whether you had more or less than 100 employees in 2019 (500 employees in 2021).

In either case, wages also includes a portion of the cost of employer provided health care.

Payment

Business owners impacted by COVID-19 can claim up to $5,000 in refundable tax credits for each W2 employee on their payroll in 2020 and up to a $7,000 credit per quarter (excluding Q4) for each employee in 2021.

We can make it easier to receive this valuable tax credit

Our business is helping your business thrive. We are central New Jersey’s leading small accounting firm for almost thirty years. In tough times we make doing business easier. The Employee Retention Tax Credit is just one of the ways we can help your business and your employees thrive. Please contact us now for help on receiving an ERC payment and to review additional strategies to improve your bottom line.

DISCLOSURE: Law changes constantly. Information provided here is only informational and is not to be relied upon without first consulting with your own tax consultants or with our firm.