Employee Retention Tax Credit |
6 Months Ended |
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Jun. 30, 2025 | |
Retirement Benefits [Abstract] | |
Employee Retention Tax Credit | Employee Retention Tax Credit In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law, providing numerous tax provisions and other stimulus measures, including the Employee Retention Tax Credit (ERTC): a refundable tax credit against certain employment taxes for qualifying businesses keeping employees on their payroll during the COVID-19 pandemic. The Company determined that it qualified for the ERTC in the last three quarters of 2020 and all three quarters of 2021 and filed a claim for the credit in August 2022. During the quarter ended September 30, 2022, the Company recorded an aggregate benefit of approximately $2.1 million to reflect the ERTC for all eligible quarters. During the years ended December 31, 2023 and December 31, 2022, the Company collected $0.9 million and $0.6 million, respectively, related to the ERTC. During the three and six months ended June 30, 2025, the Company collected $0.3 million related to the ERTC. As of June 30, 2025, the Company's Consolidated Balance Sheets include an ERTC benefit of $0.6 million and associated commissions payable of $0.1 million recorded within prepaid expenses and other current assets and accrued expenses, respectively. On September 14, 2023, the IRS announced an immediate halt in processing new claims for the employee retention credit until at least the end of 2023, citing ongoing concerns about improper claims. The IRS guaranteed ongoing processing of existing claims, albeit at a reduced pace and with increased compliance scrutiny. The Company has since received partial payment related to its ERTC claim, with the most recent collection occurring during the three months ended June 30, 2025. The Company continues to monitor guidance and communications from the IRS and remains committed to complying with all applicable requirements.
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