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Small Business to Take Hit as Covid Tax Perk Ends, Advisers Fear

Nov. 17, 2021, 9:46 AM

Congress’s decision to end, three months early, a tax perk designed to help businesses keep employees on payroll will add more obstacles to an already confusing process to claim the credit.

Nestled in the $550 billion infrastructure bill signed into law by President Joe Biden on Nov. 15 is a provision that ends the employee retention credit retroactively on Sept. 30, instead of the Dec. 31 sunset date scheduled under a pandemic relief law that went into effect in March.

The credit encourages businesses to keep employees instead of letting them go. It was initially implemented in ...