Happy Thanksgiving! We hope that everyone is doing well and enjoying their Holiday Season!
For many, the month of November is about Thanksgiving and Turkey, but for us it is also a great reminder to say thank you to all the Veterans in our lives. Thank you to all our clients across the world who have served and continue to do so.
We wanted to provide a quick update on the tax implications that may affect you included in the $1 trillion Infrastructure and Jobs Act, which was signed into law on November 15th.
While the majority of this bill is associated with funding infrastructure projects there is one tax related change for business owners (S-Corps, Partnerships, LLCs, etc.) with employees.
- Employee Retention Credit: You may have been eligible to claim an Employee Retention Credit in 2020 and 2021. The Infrastructure Act ends the employee retention credit (ERC) early, repealing the fourth-quarter 2021 extension. Wages paid after September 30, 2021, are ineligible for the credit unless paid by an eligible recovery startup business.
Please reach out if you have any questions on the item above or would like to know how this may impact your business tax return. Also, there is still time to amend prior payroll reports to claim the Employee Retention Credit if you qualify and have not already applied.
Many of the potential tax law changes being discussed in the media are not currently law and are slated for the next bill on President Biden’s agenda, Build Back Better. Build Back Better is currently just a proposed law and does not carry any effect unless it passes the Senate and is Signed by President Biden. As the Bill moves to the Senate, we expect many changes to the final Bill, and if/when it becomes enacted law we will keep you all updated on developments.
We hope you and your families have a wonderful holiday season and please keep an eye out for our Yearend 2021 email coming your way sometime next month.
The Hughes Szuberla Team