Businesses affected by the COVID-19 pandemic could receive tax credits for wages and health care costs for full-time employees.
2020 - Companies with less than 100 employees can receive a refundable tax credit for 50% of qualified wages and health care costs, limited to $10,000 per employee per year. That’s a max of $5,000 per employee for all of 2020.
2021 - Companies with less than 500 employees can receive 70% of qualified wages and health care costs, limited to Q1 - Q3. That’s $7,000 per employee, or a max of $21,000.
Recovery Start Up Businesses (RSBs) are included in the American Rescue Plan Act. RSBs can claim wages up to $10,000 per employee for Q3 and Q4 of 2021. Congress has capped ERTC credits for RSBs to $50,000 per quarter.
If you received a Paycheck Protection Program (PPP) loan, you may still qualify for the ERTC. However, PPP funds and ERTC money can’t be used to cover the same payroll expenses.
ERTC funds can help your hemp business recover from economic uncertainty but applying for tax credit funds can be hard. Complicated and changing legislation makes it difficult for small business owners to get the financial relief they need. Partner with HempTax R&D Credit Advisory today to get your hemp company back on track.