Dear Commercial and Lodging Members,
If you were not already aware, TMVOA announced last month that Abbott Smith won the election for the Commercial Seat and will serve a 2-year term through Dec 2022. As the owner of the Telluride Distilling Company, Abbott carefully manages the finances of the business, so when he became aware of a tax credit that has been extended for employers as part of the CARES Act he was quick to learn more. Sharing this information with his local businesses was also important to him, thus this message is being sent to all commercial and lodging members. Please read below and link to more information and how you may be eligible for this credit.
Lastly, TMVOA would like to thank outgoing Commercial Board Member, Sean Stogner for his dedicated service.
Tax Credit for Employers for Employee Retention Credit
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARS), a new law included modifying and extending the Employee Retention Credit (ERC) for 6-months through June 30, 2021. This is designed to make it easier for businesses that, despite challenges posed by Covid-19, choose to keep employees on the payroll. Several of the changes apply only to 2021, while others apply to both 202 and 2021.
Eligible employers can now claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages they pay to employees after Dec 31, 2020, through June 30, 2021. Qualified wages are limited to $10,000 per employee per calendar quarter in 2021. Thus, the maximum ERC amount available is $7,000 per employee per calendar quarter, for a total of $14,000 in 2021.
Do not leave money on the table if you are eligible for this credit. Learn more here.