Employee retention credit

[Pacun]

For 2020, the employee retention credit was not taken. I have read in one place that I have to amend, get the credit and reduce my payroll expenses by the amount of the credit.

I have also read that employee retention credit is tax free. Which one is correct?

[Lion EA]

Yes, you amend the payroll reports to get ERC and amend the tax return to reduce that payroll deduction. If that payroll was reported on a PTE, then you also amend those Forms K-1 and the personal returns.

Where did you read that the ERC is tax free?

https://www.irs.gov/coronavirus/employee-retention-credit

[WITAXLADY]

not free - the year you get the credit for - claim the ERC - even if get it in another year - so they offset each other,.

So if get 50 - 70% credit,

you will pay the tax on that..

 

but that is still better than not getting at all!!

 

Now we are having to deal with all these offers and we all ready got our businesses their $$$!

 

D

 

[joanmcq]

The ERC credit just made the IRS Dirty Dozen tax scams.