Businesses Can Recover Thousands with Little-Known Tax Credit Program
HONOLULU, HAWAII (June 29, 2021) – With tourism bouncing back to near pre-pandemic numbers and federal stimulus money running out, Hawaii businesses need to capitalize on relief programs to support a strong recovery. But Hawaii’s leader in HR management says many employers may be leaving “free” money on the table by not considering a significant, but complex, tax credit called the Employee Retention Credit.
The Employee Retention Credit (ERC) is a 2020 and 2021 tax credit that rewards employers for keeping employees on payroll and continuing to pay their health benefits during the pandemic. It was established by the Coronavirus Aid, Relief and Economic Security (CARES) Act in March 2020 and has undergone several revisions to its rules earlier this year. Eligible businesses that take advantage of the Employee Retention Credit can recover up to $5,000 per employee by amending and retroactively claiming the credit on their 2020 taxes, and could potentially save up to $28,000 per employee on their 2021 taxes.
ProService believes that not enough organizations are aware of this powerful, but little-known tax relief program. “Many businesses are cash strapped and don’t realize this credit exists, let alone how much meaningful money is on the table,” said Ben Godsey, President and CEO of ProService Hawaii. “We realized we needed to help educate the market about this credit, and not just amongst our clients, so that all businesses have the opportunity to inject thousands of dollars back into their business if they’re eligible.”
To help Hawaii businesses understand the complex nuances of ERC, ProService Hawaii has released a free webinar titled “How to Recoup Thousands with the Employee Retention Credit for 2020,” which features expert views and predominantly focuses on the ERC qualifications to retroactively claim this credit for 2020. ProService has made this available to everyone that’s interested and businesses do not have to be a ProService client to access this free ERC resource. To watch the on-demand, visit ProService’s website.
If a business is a ProService client it is recommended they contact ProService directly for help. Non-clients are highly encouraged to contact their CPA (or HR partner of record) for assistance with the ERC.
About ProService Hawaii
ProService is the state’s leader in HR management. The company provides a comprehensive suite of HR solutions including strategic HR, payroll, human resource services, health benefits management, workers’ compensation and 401(k) management, as well as risk management and regulatory compliance, for over 2,000 local businesses representing 35,000 employees statewide. It is accredited by the Employer Services Assurance Corporation (ESAC).
ProService is headquartered on Oahu at 6600 Kalanianaole Hwy., Ste. 200, Honolulu HI 96825. Additional offices are located in Kona, Kahului and Kapaa. Telephone: (808) 466-1296. On the web at www.proservice.com.