Employees of family-owned businesses may not be eligible for the Employee Retention Credit (ERC). This credit was enacted to encourage eligible employers to keep employees on their payrolls during the pandemic. It was in effect for most employers through Sept. 30, 2021 (startup recovery businesses could claim it through Dec. 31, 2021). However, wages paid to related individuals weren’t qualified wages for purposes of the ERC. That means that wages of certain employees of a family business aren’t eligible (although the credit is still available for qualified wages paid to unrelated employees). To read an IRS letter to a member of Congress explaining the rules: https://bit.ly/3LNxYmJ #familyowned #business #investor #entrepreneur #employeeretentioncredit
0 Comments