The NAMA calls on Congress to guarantee access to the ERTC during the fourth quarter in the reconciliation package and to fulfill the promise they made to small businesses. The employee retention tax credit (ERTC) was a relief measure under the CARES Act for companies that qualified and retained employees. NAMA was part of a broad coalition of advocates who lobbied Congress to honor its commitment to American small business owners and maintain the ERTC in the last quarter. Treasury Secretary Janet Yellen and IRS Commissioner Charles Rettig are asking them to help restaurants deal with this change with actions such as accelerating the ERTC payment process and allowing companies to postpone federal income tax payments starting in January.
Check: “Companies must pay withheld payroll taxes to monetize the advance credit and a 10% penalty will apply if companies don't deposit the payroll taxes that were previously withheld from employees. The guide is in two parts, depending on whether the employer received an advance payment from the ERTC through Form 7200 or if the employer reduced its EFTPS deposits in anticipation of the ERTC. However, with the passage of the long-awaited infrastructure bill, the ERTC comes to an early end, affecting many companies that have relied on financial aid. The government introduced several programs and policies as a form of relief, including the Employee Retention Tax Credit (ERTC).