On 12/21/20, Congress passed another COVID-19 economic relief package. The bill is expected to be signed by the President this week. The economic relief package expands the employee retention credit – please check back for more information in January
The Federal and Maine governments have provided for certain tax credits to support businesses during the COVID-19 pandemic. Read below for more details.
Employee Retention Tax Credit
Earn up to $5,000 in tax credits per employee on your payroll – or get a refund at the end of the quarter.
Businesses who have experienced a significant decline in gross receipts in 2020 and are paying workers may be eligible for a tax credit for up to $5,000 per employee – payable immediately at the end of each quarter in 2020.
Note: Businesses who have a Paycheck Protection Program loan are not eligible. Self-employed wages are not eligible.
Watch our brief summary above for more information and then talk to your accountant or bookkeeper to file for the employee retention tax credit using IRS Form 941.
- Employee Retention Tax Credit (CEI Powerpoint)