Q2 End is Near: Do you qualify for Employee Retention Credits?

If you're eligible, the credit is now 70% of the first $10,000 paid to each employee in each eligible quarter. It is also available for all 4 quarters of 2021, so keeping your bookkeeping up to date to determine eligibility each quarter is important this year.

Quarterly Sales: 2021 vs. 2019

To determine if you qualify for Employee Retention Credits (ERC) for Quarter 2 of 2021, either your Q1 or Q2 sales of 2021 need be to more than 20% lower than the respective quarter of 2019. So if your sales were NOT eligible in Q1, we'd want to check your Q2 sales to determine if you'll be eligible based on Q2 (and if so, it means you'd then automatically also be eligible for Q3).

Need help determining ERC eligibility?*
Send us your sales figures for Q1 and Q2 of 2019 AND 2021.

Did you receive a 2nd PPP loan in 2021?*
Let us know the date and amount of the PPP loan received.

Wait to file Q2 Form 941!

The Employee Retention Credit is claimed on Form 941, so hold off on filing that form until you have determined whether or not you are eligible. If your sales are NOT lower by more than 20% for either Q1 or Q2 of 2021 compared to 2019, then you can go ahead and file your Form 941 as well as the state reports that are due.

Please reach out to your Payroll Specialist at Fox Tax for help!*

Thanks!
Mark, Alyssa and the Fox Tax Team

*Additional Consulting regarding Tax Credits falls outside the usual support given with the monthly online payroll subscription. Hourly Consulting Fees will apply for determining and adjusting payroll to claim Employee Retention Credits.

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