Bipartisan legislation to restore the COVID-related employee retention tax credit (ERTC) for October-December 2021 will be introduced as soon as this week. Representatives Carol Miller (R-WV), Stephanie Murphy (D-FL), Terri Sewell (D-AL), and Kevin Hern (R-OK) are leading the “ERTC Reinstatement Act,” allowing struggling small businesses to access up to $7,000 in tax credits for each eligible employee’s wages during the fourth calendar quarter of 2021.
While the ERTC was set to end by January 1, 2022, the “Infrastructure Investment and Jobs Act” terminated this credit for the fourth quarter of 2021. Restaurants have increasingly relied on ERTC to support employee retention and sustain economic headwinds due to COVID-19. Now, hurting small businesses may face a retroactive tax increase and administrative headaches due to the early, mid-calendar quarter end of ERTC.
Restaurants strongly support the “ERTC Reinstatement Act” and thank the bipartisan leadership of Reps. Miller, Murphy, Sewell, and Hern to advance this critical support for small businesses.
To learn more about ERTC, register for our upcoming webinar on December 16. To urge the U.S. Department of Treasury to speed up ERTC payments from previous time periods, please add your name to our national petition.