Employee Retention Tax Credits

Aired September 17, 2023: EJ interviewed Jace Campbell about the ERTC. The ERTC was introduced in the CARES Act in 2020 as a way of supporting businesses who kept employees on the payroll despite financial hardships of the pandemic and oppressive governmental orders. This program seemed too good to be true at first, and so I would explain it to clients like this: "If you had financial hardship during the pandemic or your business was impacted by governmental orders, but you kept employees on your payroll and out of the unemployment lines, the government was providing cash to help soften your financial impact."The maximum an employer could receive in 2020 was $5,000 per employee, so this financially less costly to the government than if those employees had ended up claiming unemployment. In 2021 the cash refunds increased to $7,000 per employee per quarter; however, many of the governmental orders began lifting and businesses were not directly impacted to the same degree, so fewer businesses qualified in 2021.See omnystudio.com/listener for privacy information.