If your business was inoperable due to Hurricane Irma, the business may be able to recoup a portion of that loss through an employer tax benefit.
An eligible employer is one that on September 4, 2017 conducted an active trade or business in the Hurricane Irma disaster zone (the portion of the disaster area that was hardest hit and is eligible for more non-taxable federal assistance than is the disaster area generally) and whose business was made inoperable by the hurricane on any day after September 4, 2017 and before January 1, 2018 (the 2017 post-hurricane period).
Qualified wages are wages paid or incurred to an eligible employee during the 2017 post-hurricane period after the trade or business became inoperable and before significant operations resumed. Wages qualify for the credit whether or not the employee performs any services, performs services at a place other than the principal place of employment, or performs services before significant operations have resumed.
An eligible employee is an employee whose principal place of employment was with the employer in the Hurricane Irma disaster zone on September 4, 2017. The Disaster Tax Relief Act provides eligible employers with an employee retention tax credit equal to 40% of qualified wages of up to $6,000 paid to each eligible employee, resulting in a credit of up to $2,400 per employee.
If you believe that your business may qualify for this tax benefit, please provide us with the wage information necessary to support the credit when you provide us with the tax information to prepare your business tax return or contact us to further discuss the credit provisions and applicability to your business circumstances.
We look forward to assisting you with maximizing your tax benefits to help offset what your business may have lost from the hurricane.
Very truly yours,
Brimmer, Burek and Keelan, LLP