Yesterday, the United States' first confirmed case of the Omicron coronavirus variant was identified in…
If you’re unfamiliar with the financial relief provisions available from the government, eligible companies with a loss of revenue in 2020 vs 2019 meeting the criteria have the option to receive tax credits for employee retention (ERTC). Our national association (NAPEO) created a one-page ERTC overview for those considering taking advantage of this tax credit. Additionally, one of our legal partners presented this table that breaks down the ERTC changes made by the Consolidated Appropriations Act (CAA) of 2021.
Unfortunately, the only way to apply for credits in 2020 is by filing a new tax form called the 941X, which asks for the credit for eligible employees by a quarter in 2020. With a seemingly long process of mailing the form, waiting for the IRS to open it and verify your 2020 payroll taxes, then waiting for the check to be issued to your company, there’s no telling when you’ll receive the credits.
However, Delta is part of a taskforce consortium of associations that are pro-small business and are working with the IRS for an electronic and automated way to file these tax forms moving forward for a speedier process. We are hoping to have it created, announced, and in place over the next couple of weeks. Being that the whole purpose of this tax credit is to get the money back in small businesses’ hands that are desperate to stay open, this automated process will be more effective on the economy if enacted in a timely manner. We will keep you in the loop as it progresses.
Furthermore, the U.S. Senate signaled it was likely to bar any increase in the federal minimum wage in the near future when it approved a budget reconciliation resolution for President Joe Biden’s $1.9 trillion stimulus measure on Feb. 5, along with a nonbinding amendment that would delay taking action to raise the minimum wage until after the pandemic. Critics of raising the minimum wage during the coronavirus crisis said small businesses, in particular, are struggling to stay afloat and that requiring them to raise wages now would force many to go out of business. For now, the minimum wage hike has been put on hold, and SHRM released this article about minimum-wage compliance for those operating in multiple jurisdictions.
We hope you all have a wonderful weekend and a happy Valentine’s Day!