Wednesday, August 30, 2023

Is it a Stimulus or a Loan?

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When it comes to the (ERC), many businesses are still confused as to WHAT it is…

 

First off, Esther, it IS NOT a loan. Businesses receive these funds because they retained W2 employees. You do not pay it off like a loan.

 

The Employee Retention Credit (ERC) is a refundable tax credit. It is a stimulus program created by Congress, and passed on March 27, 2020 as part of the CARES Act, to compensate businesses that retained employees during COVID. A majority of business are eligible even if they had a PPP loan.

 

Although the credit ended in the last quarter of 2021, businesses can still claim for the last 3 quarters of 2020 and the first 3 quarters of 2021 if they haven’t already.

 

Many businesses, schools, non-profits, and churches experienced hardships during the pandemic. Financial loss IS NOT the sole factor in determining eligibility.

 

To see if your company is eligible, CLICK HERE to schedule a 25 minute call to discuss your specifics. 

 

Business owners are encouraged to see if they qualify and, if so, work with an experienced firm to help file. We can help you in your claim.

 

Please feel free to pass this along to others as well, Esther, and we hope this helps!

 

Sincerely,

The HD Group

(602) 878-7696

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