Employee Retention Credit
As your trusted advisor, American National Bank wants to let you know you may be eligible to receive an Employee Retention Credit (ERC). ERC is a program passed by Congress during COVID-19 to provide financial assistance to companies. ERC provides eligible employers with payroll tax credits for wages and health insurance paid to employees. The ERC refund can be as high as $5,000 per employee in 2020 and as high as $21,000 per employee in 2021, and filing for this refund requires filing an amended Form 941X (quarterly federal payroll tax return). ERC credits are calculated based on the qualifying wages paid to employees during eligible employer status. For most companies taking advantage of this program, the refundable tax credits are well in excess of the payroll taxes paid by the employers and can even be larger than the amounts a company received in PPP funding. Note there is a deadline to apply for ERC, beginning in 2Q 2023.
Please contact your payroll processing company or accountant directly if you are interested in applying for ERC. If you need a referral to someone qualified to assist you, please contact us at (954) 491-7788.