ERC Credit FAQ #13. Are Eligible Employers Required To Withhold Federal Employment Taxes On Qualified Wages Paid To Employees?

Frequently asked question #13 “Are Eligible Employers required to withhold federal employment taxes on qualified wages paid to employees?” under the General Information section of FAQs: Employee Retention Credit under the CARES Act, provided by the IRS.gov to help business owners understand the ERC program. Information is below for the question #13 Are Eligible Employers required to withhold federal employment taxes on qualified wages paid to employees?

ERC Credit Frequently Asked Question #13:

General Information FAQs

13. Are Eligible Employers required to withhold federal employment taxes on qualified wages paid to employees?

Yes.  Qualified wages are wages subject to withholding of federal income tax and both the employer’s and employee’s shares of social security and Medicare taxes. (See How to Claim the Employee Retention Credit for information regarding an Eligible Employer’s ability to retain the federal income tax withholding and the employees share of social security and Medicare taxes in an amount equal to the Employee Retention Credit.) Qualified wages are also considered wages for purposes of other benefits that the employer provides, such as contributions to 401(k) plans.

For more Internal Revenue Service (IRS) Department of the Treasury Employee Retention Credit (ERC) General Information FAQs, visit the official IRS.gov tax website.

Conclusion and Summary on ERC Credit FAQ #13. Are Eligible Employers required to withhold federal employment taxes on qualified wages paid to employees?

The “Are Eligible Employers required to withhold federal employment taxes on qualified wages paid to employees?” is Frequently Asked Question #13 of many commonly asked questions small business owners are wondering about how to file the Employee Retention Tax Credit (ERTC). The IRS ERC Tax Credit program is a confusing and complex process to determine the correct ERC calculations your business qualifies for. Answers to “Are Eligible Employers required to withhold federal employment taxes on qualified wages paid to employees?” and filling out form 941-X may change slightly from frequently updated rules and regulations from the IRS. Leave a comment below if you have further questions on ERC Credit FAQ #13.

Help Completing / Filing / Claiming the Employee Retention Credit (ERC)

Receive Up to a $26,000 ERC Credit from the IRS Per Employee

Disaster Loan Advisors can assist your business with the complex and confusing Employee Retention Credit (ERC), Form 941-X, and the Employee Retention Tax Credit (ERTC) program. 

Depending on eligibility, business owners and companies can receive up to $26,000 per employee based on the number of W2 employees you had on the payroll in 2020 and 2021.

The ERC / ERTC Tax Credit Program is a valuable IRS tax credit you can claim. This is money you have already paid to the IRS in payroll taxes for your W2 employees.

We DO NOT charge a percentage (%) of your ERC Refund like some companies are charging. Some ERC firms out there are charging upwards of 15% to 35% of your ERC refund!

Our professional ERC fee and pricing structure is very reasonable in comparison.

If you are looking for an ERC Company that believes in providing professional ERC Services and value, in exchange for a fair, reasonable, and ethical fee for the amount of work required, Disaster Loan Advisors is a good fit for you. 

Schedule Your Free Employee Retention Credit Consultation to see what amount of employee retention tax credit your company qualifies for.

Cover Image Credit: Irs.gov / ERC FAQ / Disaster Loan Advisors

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