COLUMBUS, Ohio, Dec. 15, 2021 /PRNewswire-PRWeb/ -- Today, Clarus, the leader in world-class technology that enables every business to unlock the full value of employment tax incentives, is revealing new insights about the most impactful tax incentive programs for small and midsize businesses in 2021. While there were a host of state and federal incentive programs available to SMBs this year, including The Work Opportunity Tax Credit (WOTC), Paycheck Protection Program (PPP), and the Restaurant Revitalization Fund (RRF), the Employee Retention Tax Credit (ERTC) played the biggest role. This year, Clarus helped nearly 70 SMBs secure approximately $50 million in ERTC dollars. ERTC, under the CARES Act, is a fully refundable payroll tax credit that allows eligible businesses to deduct up to 70 percent of up to $10,000 in qualified wages paid per employee per quarter for tax year 2021.
"State and federal tax incentive programs continued to be a lifeline for many small businesses in 2021 and the Employee Retention Tax Credit, in particular, was highly leveraged by SMBs to help keep employees on payroll," said Brent Johnson, co-founder of Clarus. "2021 was another year of economic ups and downs for businesses across industries, so it's more important than ever before that all companies have access and insight into the programs that have been developed to support them through these tough times so they can continue to grow - and that's why our mission is to help streamline the process so that more businesses can participate."
Nationwide, employers claimed $16.4 billion in Employee Retention Tax Credit in the second quarter alone - more than double the $7.6 billion claimed one year earlier at the same time. For companies in industries hit especially hard (i.e. leisure, hospitality, and healthcare), this support was critical.
"The pandemic continued to significantly impact the long-term care industry, with visitation restrictions, lack of new admissions, and staffing shortages. With the help of Clarus, we were able to determine our eligibility and calculate our credit," said Molly Farley, CFO, West View Healthy Living. "The Employee Retention Tax Credit will allow us to maintain staffing levels, aid in business continuity and and assist with meeting loan covenants as our industry continues to recover."
"While the recent passing of the infrastructure bill may signal an early ending of ERTC, any business that applied for the Employee Retention Tax credit still has up to three years to claim it if they filed before September 30, 2021. It also reinforces why the support experts, like Clarus, are so powerful as there will be new and updated programs to tap into next year," added Johnson.
Clarus monitors state and federal employment tax credit programs and has helped companies secure more than $145MM in incentive dollars. To learn more and determine if your business is eligible for ERTC, visit http://www.claruswotc.com/ertc.
About Clarus
Clarus is the leader in world-class technology that enables every business to unlock the full value of employment tax incentives . Founded by tax and technology experts, Clarus builds cloud-based software to deliver access, compliance, and clarity for federal and state employment tax credit programs. With Clarus, companies of all sizes can realize and optimize the power of government programs to materially impact their business. For more information, visit http://www.claruswotc.com/ertc.
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SOURCE Clarus
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