The ERTC is a refundable payroll tax credit for salaries paid by an employer whose company is totally or partially suspended due to an order related to COVID-19 or who is experiencing a decrease of at least 10 percent in gross income compared to it. calendar quarter of the previous year. The ERTC is a tax credit that can only be accessed by companies, not individuals. It also only applies to employees on the payroll, not to contractors or the like.
Unlike tax deductions that reduce a company's taxable income, the ERTC tax credit is subtracted from the amount of tax owed by a qualifying company. This means that companies that take advantage of the tax credit will owe less money in taxes because of it.
