New Infrastructure Law Impacts Employee Retention Credit (ERC)
President Biden has signed into law the $1 trillion Infrastructure Investment and Jobs Act approved by the U.S. House of Representatives. The law will bring infrastructure investments across the country, including improved roads, railroad lines and other public transportation infrastructure.
The new law will also do away with what’s become an important benefit for businesses around the country still working to recover from the financial impact of the COVID-19 pandemic. The Infrastructure Investment and Jobs Act will end the Employee Retention Credit (ERC) early for most businesses. Expanded to certain employers as a result of the American Rescue Plan Act, the ERC had applied to the third and fourth quarters of 2021. Now the ERC will end with the third quarter of this year. In other words, any wages paid out after September 30 of this year won’t be eligible for the ERC.
If your business planned to take advantage of the ERC for the fourth quarter, be sure to be in touch with your GJM team so you can make the necessary adjustments in your business planning as we approach yearend.
We continue to watch developments in Washington, D.C. with the Build Back Better Act as lawmakers continue to work to come to an agreement. The proposed legislation addresses climate policy, social spending and would bring many tax policy changes. Lawmakers are hoping to pass something in the next couple of weeks.
Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.