DELMARVA – If you’re a small business owner and, if you’re lucky, federal covid-19 relief has run out. Job retention credits from the IRS, which could offer up to $26,000 per employee to affected businesses between March 2020 and July 2021, are worth considering.
Amy Thompson, chairman of the Ocean City Chamber of Commerce, said: “This particular funding is intended to help employers who continue to retain their employees despite losing profits. I will.”
Thompson said the move could bring substantial relief to all businesses in the resort town.
“By and large, we are a community of service that is largely hospitable, so almost every place we touch here is affected by this,” she said.
But there’s a reason the business community says the program was overlooked compared to the more popular PPP programs.
An employee retention credit is not a loan, it is a tax credit with a complex loss formula per employee per specific time frame that determines the total amount a company can earn.
John Hickman of SU Beacon Center recommends that businesses contact a CPA to determine their eligibility and degree of entitlement, but at 47ABC, for businesses that lost money while keeping employees on payroll, He says he believes paying is worth the effort.
“If you have 10 employees and you get the full 260,000 tax credits, that’s a big impact on any business.” Not allowed. “
Hickman also said that despite having an employee in the name, the payout was for the business owner and that the employee the company was paying salaries to while incurring losses that the program is intended to mitigate. Said it wasn’t.