Legislation would reinstate the ERTC for the fourth quarter
WASHINGTON, D.C. (Dec. 7, 2021) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, released the following statement from Courtney Titus Brooks, Senior Manager of Federal Government Relations, in response to the introduction of the Employee Retention Tax Credit Reinstatement Act:
“Small businesses continue to manage several challenges such as the labor shortage, supply chain disruptions, and COVID-19 variants. The Employee Retention Tax Credit is one of the last COVID-19 recovery programs available to small businesses and by reinstating it for the fourth quarter, owners who were planning on using the tax credit will no longer face a retroactive tax increase or burdensome paperwork. NFIB thanks Reps. Carol Miller, Stephanie Murphy, Kevin Hern, and Terri Sewell for their work to support Main Street and introduce the Employee Retention Tax Credit Reinstatement Act.”
The Employee Retention Tax Credit Reinstatement Act was introduced today in the U.S. House of Representatives by Rep. Carol Miller (R-WV), Rep. Stephanie Murphy (D-FL), Rep. Kevin Hern (R-OK), and Rep. Terri Sewell (D-AL).
According to a recent NFIB survey, 13% of small employers claimed the ERTC for wages in 2020 and another 13% claimed the ERTC for wages in 2021. Of those small employers who claimed or submitted forms to claim the ERTC in 2020 or 2021, 44% withheld payroll taxes on their 941 form, 53% submitted a 941-X form, and 3% submitted a 7200 form.