McDonald Hopkins member Carl Grassi authored the December 12 edition of Crain’s Cleveland Business’ Tax Tips on “Early termination of the Employee Retention Credit and potential personal liability.”
In the article, Grassi warns, “The early termination of the ERC could cause problems for those businesses that already monetized the credit for wages paid beginning Oct. 1, 2021. The ERC is claimed on the Form 941 quarterly payroll tax return, but the rules allow a business to monetize the credit early by retaining the federal payroll taxes withheld from its employees’ wages, rather than depositing the money with the IRS. As a result, some businesses will not have deposited their tax withholding obligations for Q4 2021 in anticipation of receiving the credit.”
You can read the entire piece at CrainsCleveland.com by clicking here.