Explaining the Employee Retention Tax Credit Changes made on March 11, 2021
The Employee Retention Tax Credit (ERTC) has been designed to incentivize businesses of all sizes to keep employees on their payroll during this period of economic hardship.
On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (ARPA), which changed the conditions for ERTC in a favorable way for businesses. These changes can have a big impact on a company's bottom line, and businesses should work with their tax preparers to maximize the benefits.
Learn more in today's Member Question of the Day.
Member Questions on Tax Credit Changes
In this episode of Member Question of the Day, we welcome back Randy Kaltenmark with Barnes and Thornburg LLP, who returns with an explanation of the March 2021 changes to the Employee Retention Tax Credit.
This 6-minute video answers the following questions:
What changes did the ARPA make to the employee retention credit?
What is the extended eligibility period?
What is the recovery startup business?
What is a severely financially distressed employer?