As of January 31, 2022, the Employee Retention Credit is no longer available to employers. Companies need to understand what this means for them and their teams.
This blog post will discuss the employee retention credit and what employers need to do now.
We'll also provide tips on how businesses can keep their employees happy and engaged.
What is employee retention?
The Employee Retention Credit is a tax credit that 100% active phone number list began in 2017. It offered businesses a tax break for retaining employees for at least one year. The credit was available to employers in all 50 states and could be worth up to $1,000 per employee.
A group of professionals collaborated around a table with laptops and documents, engaged in discussion and sharing ideas.
Businesses must file Form 8850 with the IRS to claim the employee retention credit. The form was used to report the number of employees retained for at least one year. Businesses could claim the credit for up to five employees, for a total credit of up to $5,000.
The employee retention loan was available to businesses of all sizes, but was especially beneficial to small businesses. Small companies often have a harder time retaining employees than larger businesses, so the loan was a valuable aid.
Why was the employee retention credit extended?
The employee retention credit was set to expire in 2020, but was extended to December 31, 2020, giving businesses an extra year to take advantage of the credit.
