
The Employee Retention Credit is likely going to be extended to December 31, 2021. This will allow many farmers to qualify for even a greater tax credit.
The latest stimulus package being proposed by the House has a provision that will expand the Employee Retention Credit (ERC) to December 31, 2021. This would allow farmers with employees (not related parties or commodity wages) to qualify for a 70% credit of each employee’s wages per quarter up to $7,000 per quarter or $28,000 per employee for the year if all quarters qualify.
The only requirement is that your total gross receipts for each calendar year quarter in 2021 is at least 20% lower than the same quarter in 2019.
Farmers are uniquely qualified to maintain revenues at certain levels. The key for 2021 is to know your 2019 gross receipts for each quarter and determine if you can keep those receipts under 80% of that number for a quarter or two. It is likely difficult to do it all year, but for at least two or three quarters is achievable.
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