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Employee Retention Tax Credit: A Lifeline for Recovery Start-Ups Post-February 2020

By: Patti Callaway

The Employee Retention Tax Credit (ERTC) has emerged as a crucial support for recovery start-ups amidst the aftermath of the COVID-19 pandemic. Introduced as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), this refundable tax credit has been instrumental in helping organizations retain employees and navigate the path to recovery.

Untapped Potential for Start-Ups
If your start-up has not yet explored the benefits of the ERTC, it’s essential to understand the potential it holds. The ERTC provides significant tax credits to recovery start-ups, thus enabling them to retain qualified employees during challenging times. For start-ups established after February 2020, the credit can be up to 70% of qualified wages; amounting to a maximum of $7,000 per employee per quarter. This financial relief helps offset payroll costs and allows start-ups to allocate resources towards growth and recovery initiatives.

Unlocking Financial Stability
By taking advantage of the ERTC, start-ups can unlock a path to financial stability. The refundable nature of the credit means any excess credit amount can be claimed as a refund, providing an immediate injection of cash flow into your organization. This infusion of funds can support your start-up’s operations, investments, and initiatives to drive long-term success.

Navigating the Road to Recovery
The ERTC serves as a catalyst for recovery by helping start-ups retain their valuable employees. By maintaining a stable workforce, you can focus on organizational continuity, developing client relationships, and positioning your start-up for growth opportunities as the economy rebounds.

To see if you qualify for the ERTC, contact us for a complimentary 30-minute consultation. Our team can provide guidance on eligibility requirements, qualified wages, and the application process. It’s crucial to act promptly as there are time limitations and deadlines associated with the credit.

 

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