SaaS Tax Credit Secrets Your Accountant Missed
Employee Retention Tax Credit (ERTC)
The Employee Retention Tax Credit, established to support businesses during the COVID-19 pandemic, is another potential benefit for SaaS companies. This credit is available to employers who retained employees during periods of economic hardship. While the eligibility criteria have evolved, SaaS companies that experienced a significant decline in gross receipts or were subject to government shutdowns may qualify. The ERTC can provide substantial savings, with credits amounting to thousands of dollars per employee3.