The Employee Retention Tax Credit is a valuable tax credit that businesses can claim for the wages they pay to employees who were retained in order to avoid mass layoffs. The maximum amount of the credit is $5,000 per employee, and it can be claimed for up to two years. From our team at Benchmark Human Capital, you can learn how to take advantage of ERTC. Keep reading for more!
Maximum Amount of an Eligible Employer’s Employee Retention Credit
Maximum Amount of an Eligible Employer’s Employee Retention Credit
How Is the Maximum Amount of ERTC Determined?
The maximum amount of an eligible employer's Employee Retention Credit will be determined based on each employee or business owner’s salary and wages paid during the year. This is up to a limit of $25,000 per person in total compensation paid over all quarters combined. Our experts at Benchmark Human Capital help you navigate through claiming this credit with ease.
How You Can Take Advantage of ERTC
Employers can take advantage of this opportunity by hiring more employees if they are looking to give back, while simultaneously sustaining their workforce through these difficult times! And those who already employ workers can benefit too: with just one extra hire at any level within your organization - whether it be full-time, part-time, or seasonal.
Gross Receipts for ERTC
Other than a tax-exempt organization, employers can use gross receipts for purposes of the Employee Retention Tax Credit. Gross receipts are of the current taxable year, including total sales. This includes all amounts received for services, any income, interest, rents, and more. At Benchmark Human Capital, we are passionate about providing you with up-to-date information to help you get the most out of your business.
Details of Gross Receipts and ERTC
The term "gross receipts" has the same meaning as when used in sections 448(c) and 448(c) of the Internal Revenue Code and regulations. Include if these amounts are generated in the ordinary course of business. Gross receipts do not include any repayments or sales tax reimbursements received in connection with a sale, regardless of whether the tax is lawfully collected from the consumer of the commodity or service and merely remitted to a government agency.
Learn more about Employee Retention Credit with the help of our experienced experts at Benchmark Human Capital. Contact us today!