Take Advantage of Government Tax Credits for Retaining Employees
On September 29, 2017 the President signed into law the Disaster Tax Relief and Airport and Airway Extension Act of 2017. This law was designed to provide tax credit relief to victims of Hurricanes Harvey, Irma, and Maria.
Eligible employers may receive an employee retention credit of 40 percent of up to $6,000 in wages.
Employee Retention Tax Credit Details
One of the provisions is an employee retention credit of 40 percent of up to $6,000 in wages paid by an “eligible employer.” An eligible employer is defined as one which became inoperable anytime from the date of the hurricane to January 1, 2018. The wages must be paid to an “eligible employees,” which is defined as an individual whose place of work for such employer was in the disaster area.
States that Qualify for the Tax Credit
The employee retention credit applies to parts of Alabama, Florida, Georgia, South Carolina, Texas and all municipalities in Puerto Rico.