An Agents Guide To Employee Retention Tax Credits

With 2021 coming to a close, insurance agents –like many other small business owners in the U.S.– are thinking about end of year tax planning. The good news is that there are a plethora of different tax credits and exemptions that business owners can take advantage of for 2021. One of the most significant is the Employee Retention Tax Credit that was amongst the provisions of the CARES Act signed into U.S. law in March 2020. This credit was introduced as an incentive for business owners to maintain their payroll and not lay-off their workers in the face of declining business brought about during the global COVID-19 pandemic. In 2020, the law entitled employers to a credit worth 50% of the qualified wages of their employees. But in 2021, this amount has been increased to 70% of qualified wages.

The deadline is quickly approaching, but you can still take advantage of this tax credit! In this article, financial experts Club Capital (who focus on serving insurance agents), breakdown what you need to know about these credits. According to them "more than 95% of Agents that opened their Agency after February 15, 2020 qualify for these credits." They also break down what the tax credit entails, how to know if you qualify, the potential amounts, and how to receive the credit for your agency.

To learn more about employee retention tax credits and the extension, check out the full post here: https://blog.club.capital/employee-retention-tax-credits 

To learn more, read the entire article here: https://blog.club.capital/employee-retention-tax-credits