Do you qualify for the employee retention credit (ERC)? Did you claim it?

It’s not too late. You can still amend your 2020 and 2021 payroll tax returns.

Remember, this can be worth up to $5,000 per employee in 2020 and up to $7,000 per employee per quarter for the first three quarters of 2021 for a 2021 total of $21,000 ($26,000 per qualifying employee for 2020 and 2021 combined).

Example. Let’s say you have 10 employees who fully qualify for the credit. That’s a $260,000 tax credit (think cash): ($5,000 + $7,000 + $7,000 + $7,000) x 10 = $260,000.

This article focuses on the ERC when you have more than one entity. You will see some surprising rules. Let’s start with some basics.

Who Must Aggregate Businesses?

When you own more than one entity, you face special rules when it comes to the employee retention credit.

And you don’t have to own the other entity entirely to face the special ... Log in to view full article.