Watertown businesses may be able to qualify for thousands of dollars back from the Federal government through a credit against the employment taxes they paid during the pandemic.
Businesses and non-profits may be eligible for the employee retention tax credit from the Federal government. The program started with the first COVID-19 Pandemic relief act and was expanded to give businesses the opportunity to claim more money back from wages they paid to employees in 2020 and 2021, according to an article on CNBC.com, which was highlighted the Newton Needham Regional Chamber.
The program is aimed at small and midsized businesses, which are those with 500 or fewer employees. To qualify, the business must have seen a drop of at least 20 percent in a quarter in 2021 compared to the same quarter in 2019.
The credit is available for wages paid through the end of 2021 and retroactive payments for 2020 wages. The savings can be up to up to $28,000 per employee in a year, according to CNBC. It can be claimed on salary paid and certain health plan costs.
See more information and instruction on from the IRS by clicking here.