Who ever thought we would have to resort to paying employees NOT to work, smh. Well, when you are ordered by the government to shut your business down because of a pandemic, you might have to do just that.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act created, among other things, a “refundable” tax credit called the Employee Retention Tax Credit (ERTC). Who can claim this weird, but wonderful, refundable tax credit? An eligible businesses (of any size): (1) that is subject to closure, (2) due to COVID-19, (3) who continue to pay some or all of their employees. And before any of my Sole Proprietor bretheren out there get any funny ideas … Self-employed individuals are NOT eligible for this credit for their own earnings, but may be eligible for wages paid to their employees. Whomp! Whomp! Wouldn’t that be nice, lol.
If you are still interested in applying for this credit, click the link in the reference section below. It is a one-stop-shop for all things ERTC. What qualifies as an eligible employer, what are qualifying wages, how you receive the credit, etc. If you’re stuck, or just need more info, etc., just AsQ Prince!