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WE CAN HELP YOU CLAIM YOUR
EMPLOYEE RETENTION TAX CREDIT
WE CAN HELP YOU CLAIM YOUR
EMPLOYEE RETENTION TAX CREDIT
So, What Is The Employee Retention Tax Credit ?
So, What Is The Employee Retention Tax Credit ?
A business with employees that was subject to government regulations brought about by the COVID-19 pandemic or that suffered economic losses in 2020 or 2021 as a result of COVID-19 closures is eligible to receive the Employee Retention Tax Credit (ERTC).
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), ERTC was created to provide businesses with a refundable credit that can be claimed on wages paid to employees. ERTC was devised as an incentive for employers to retain employees on their payrolls when the pandemic began.
Employers should know that ERTC is a refundable payroll tax CREDIT, not a loan. It entitles employers to reductions to payroll taxes or cash refunds. Notably, the ERTC can be applied retroactively to March 12, 2020. This means that you still have the opportunity to claim funds through the federal government to help your business as it continues to navigate this unprecedented pandemic.
A business with employees that was subject to government regulations brought about by the COVID-19 pandemic or that suffered economic losses in 2020 or 2021 as a result of COVID-19 closures is eligible to receive the Employee Retention Tax Credit (ERTC).
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), ERTC was created to provide businesses with a refundable credit that can be claimed on wages paid to employees. ERTC was devised as an incentive for employers to retain employees on their payrolls when the pandemic began.
Employers should know that ERTC is a refundable payroll tax CREDIT, not a loan. It entitles employers to reductions to payroll taxes or cash refunds. Notably, the ERTC can be applied retroactively to March 12, 2020. This means that you still have the opportunity to claim funds through the federal government to help your business as it continues to navigate this unprecedented pandemic.
Free, No Obligation Pre-Qualification.
By answering a few, simple, non-invasive questions our team of ERTC experts can determine if you likely qualify for a no-strings-attached tax credit. There is no cost or obligation to be pre-qualified.
Up To $26,000 Per W-2 Employee
Start-Ups are eligible for up to $33K. Companies who increased revenues in 2020 or 2021 may qualify, too.
No Restrictions - No Repayment.
While the ERTC was created in the CARES act along with the PPP Loans – this is not a loan, there is no repayment. There are no restrictions for how recipients of the credit must use the funds.
Free, No Obligation Pre-Qualification.
By answering a few, simple, non-invasive questions our team of ERTC experts can determine if you likely qualify for a no-strings-attached tax credit. There is no cost or obligation to be pre-qualified.
Up To $26,000 Per W-2 Employee
Start-Ups are eligible for up to $33K. Companies who increased revenues in 2020 or 2021 may qualify, too.
No Restrictions - No Repayment.
While the ERTC was created in the CARES act along with the PPP Loans – this is not a loan, there is no repayment. There are no restrictions for how recipients of the credit must use the funds.
We Will Help You Every
Step Of The Way
IRS forms are complicated. Submitting incorrect information, filing the wrong paperwork, or not being informed about the most recent regulations could delay the credit you are entitled to receive.
We will ensure that your forms are properly completed and filed. We will follow the progress of your claim with the Internal Revenue Service (IRS) and make certain that it is being reviewed by the proper parties. We have the knowledge and experience to manage and administer your ERTC claim and can help you get your refund in a timely and efficient manner.
We Will Help You Every
Step Of The Way
IRS forms are complicated. Submitting incorrect information, filing the wrong paperwork, or not being informed about the most recent regulations could delay the credit you are entitled to receive.
We will ensure that your forms are properly completed and filed. We will follow the progress of your claim with the Internal Revenue Service (IRS) and make certain that it is being reviewed by the proper parties. We have the knowledge and experience to manage and administer your ERTC claim and can help you get your refund in a timely and efficient manner.
Questions And Answers
How Much Can I Receive Under The Employee Retention Tax Credit?
ERTC is a fully refundable tax credit. For qualified wages paid from March 12, 2020 through December 31, 2020, ERTC can be applied to 50% of qualifying wages (which includes qualified health expenses) for eligible employees. Employers can claim 50% of up to $10,000 qualifying wages and health benefits per employee, with a maximum credit of $5000 per employee in 2020.
◉ For example, you pay Mary $8,000 wages and healthcare in Q2, $6,000 in Q3, and $6,000 in Q4 of 2020. Your credit amount for Mary is $4,000 in Q2, $1,000 in Q3, and $0 in Q4. Once you hit the $5,000 limit, any additional wages you pay Mary in 2020 will not increase your credit amount.
ERTC is also available for wages paid from January 1, 2021 through September 30, 2021. For periods beginning January 1, 2021, ERTC can be applied to 70% of qualifying wages up to $10,000 per eligible employee, with a maximum credit of $7000 per employee for each quarter of 2021.
◉ This equates to a maximum credit of $21,000 per employee in 2021, and a total of up to $26,000 per full-time W-2 employee for both 2020 and 2021.
What Types Of Businesses Qualify For The Employee Retention Tax Credit?
Employers in a variety of industries may qualify for ERTC including education, government contractors, healthcare, hospitality, retail, industrial, not-for-profit, professional services, real estate, construction, and technology.
◉ If you are self-employed or a state or local government employer, then you are not eligible to receive ERTC for your wages or your government employees’ wages.
ERTC is also available for wages paid from January 1, 2021 through September 30, 2021. For periods beginning January 1, 2021, ERTC can be applied to 70% of qualifying wages up to $10,000 per eligible employee, with a maximum credit of $7000 per employee for each quarter of 2021.
Is My Business Eligible To Receive Both Paycheck Protection Program And Employee
Retention Tax Credit?
The CARES Act included two programs to help businesses maintain their workforces: the Payroll Protection Program (PPP) administered by the Small Business Administration (SBA) and the ERTC administered by the IRS. Previously, applicants receiving a PPP loan during the initial round of relief could not also apply for ERTC tax credit, but the regulations have changed! Revisions to the CARES Act on December 27, 2020, under the Consolidated Appropriations Act, 2021, (CAA) permits qualifying parties to receive relief from both PPP loans and ERTC. Those who received PPP loans may qualify for ERTC retroactively to March 12, 2020.
You May Be Eligible For Retroactive 2020 ERTC If:
✔ Your business was partially or totally impacted during any calendar quarter as a result of a COVID-19 federal, state, or local government order OR
✔ Your business revenue dropped by 50% or more in any quarter of 2020 compared to the same quarter in 2019 or the immediately preceding quarter.
You May Be Eligible For The 2021 ERTC If:
✔ Your business was partially or totally impacted during any calendar quarter as a result of a COVID-19 federal, state, or local government order OR
✔ Your business revenue dropped by 20% or more in any quarter of 2021 compared to the same quarter in 2019 or the immediately preceding quarter.
Things That Qualify You For The ERC Include:
◉ Supply chain disruptions
◉ Time taken away from shifts to clean/sanitize
◉ Federal, state or local mandates required your business to fully or partially shut down
◉ Limitations on the number of people you could have in a room or building
◉ Inability to attend normal networking events
◉ Disruptions to your sales force’s ability to function normally
◉ Limited capacity to operate
◉ Inability to work with vendors
◉ Reduction to the services or goods offered to customers
◉ Reduction to the hours of operations
◉ Shifting of hours of operations to increase facility sanitation
◉ Delayed or canceled projects due to Covid related disruptions
What Is The Maximum Employee Threshold In Order To Be Eligible For The Employee Retention Tax Credit?
To be eligible for ERTC in 2020, employers must employ 100 or fewer full-time employees, even if the employee was working. The employee threshold was expanded under the amended law. To be an eligible for ERTC in 2021, employers may employ 500 or fewer full-time employees, even if the employee was working.
Do I Need To Apply For Employee Retention Credit The Same Way I Applied For Paycheck Protection Program?
In order to receive PPP loans, you were required to apply through the SBA. Unlike PPP, there is no “application” for ERTC. You simply claim ERTC tax credit by verifying that you are legally entitled to it – just like any other tax credit. The process is simple:
◉ To claim an ERTC tax credit, a Form 941 Employer Quarterly Tax Filing is filed.
◉ To claim an ERTC credit for prior quarters, an amended form (Form 941-X) is filed to reduce your current quarter’s tax contribution and apply for a refund.
◉ You can even estimate the ERTC credits you will receive in advance of allocating payroll so you can file a Form 7200 to obtain a cash advance right away.
Questions And Answers
How Much Can I Receive Under The Employee Retention Tax Credit?
ERTC is a fully refundable tax credit. For qualified wages paid from March 12, 2020 through December 31, 2020, ERTC can be applied to 50% of qualifying wages (which includes qualified health expenses) for eligible employees. Employers can claim 50% of up to $10,000 qualifying wages and health benefits per employee, with a maximum credit of $5000 per employee in 2020.
◉ For example, you pay Mary $8,000 wages and healthcare in Q2, $6,000 in Q3, and $6,000 in Q4 of 2020. Your credit amount for Mary is $4,000 in Q2, $1,000 in Q3, and $0 in Q4. Once you hit the $5,000 limit, any additional wages you pay Mary in 2020 will not increase your credit amount.
ERTC is also available for wages paid from January 1, 2021 through September 30, 2021. For periods beginning January 1, 2021, ERTC can be applied to 70% of qualifying wages up to $10,000 per eligible employee, with a maximum credit of $7000 per employee for each quarter of 2021.
◉ This equates to a maximum credit of $21,000 per employee in 2021, and a total of up to $26,000 per full-time W-2 employee for both 2020 and 2021.
What Types Of Businesses Qualify For The Employee Retention Tax Credit?
Employers in a variety of industries may qualify for ERTC including education, government contractors, healthcare, hospitality, retail, industrial, not-for-profit, professional services, real estate, construction, and technology.
◉ If you are self-employed or a state or local government employer, then you are not eligible to receive ERTC for your wages or your government employees’ wages.
ERTC is also available for wages paid from January 1, 2021 through September 30, 2021. For periods beginning January 1, 2021, ERTC can be applied to 70% of qualifying wages up to $10,000 per eligible employee, with a maximum credit of $7000 per employee for each quarter of 2021.
Is My Business Eligible To Receive Both Paycheck Protection Program And Employee
Retention Tax Credit?
The CARES Act included two programs to help businesses maintain their workforces: the Payroll Protection Program (PPP) administered by the Small Business Administration (SBA) and the ERTC administered by the IRS. Previously, applicants receiving a PPP loan during the initial round of relief could not also apply for ERTC tax credit, but the regulations have changed! Revisions to the CARES Act on December 27, 2020, under the Consolidated Appropriations Act, 2021, (CAA) permits qualifying parties to receive relief from both PPP loans and ERTC. Those who received PPP loans may qualify for ERTC retroactively to March 12, 2020.
You May Be Eligible For Retroactive 2020 ERTC If:
✔ Your business was partially or totally impacted during any calendar quarter as a result of a COVID-19 federal, state, or local government order OR
✔ Your business revenue dropped by 50% or more in any quarter of 2020 compared to the same quarter in 2019 or the immediately preceding quarter.
You May Be Eligible For The 2021 ERTC If:
✔ Your business was partially or totally impacted during any calendar quarter as a result of a COVID-19 federal, state, or local government order OR
✔ Your business revenue dropped by 20% or more in any quarter of 2021 compared to the same quarter in 2019 or the immediately preceding quarter.
Things That Qualify You For The ERC Include:
◉ Supply chain disruptions
◉ Time taken away from shifts to clean/sanitize
◉ Federal, state or local mandates required your business to fully or partially shut down
◉ Limitations on the number of people you could have in a room or building
◉ Inability to attend normal networking events
◉ Disruptions to your sales force’s ability to function normally
◉ Limited capacity to operate
◉ Inability to work with vendors
◉ Reduction to the services or goods offered to customers
◉ Reduction to the hours of operations
◉ Shifting of hours of operations to increase facility sanitation
◉ Delayed or canceled projects due to Covid related disruptions
What Is The Maximum Employee Threshold In Order To Be Eligible For The Employee Retention Tax Credit?
To be eligible for ERTC in 2020, employers must employ 100 or fewer full-time employees, even if the employee was working. The employee threshold was expanded under the amended law. To be an eligible for ERTC in 2021, employers may employ 500 or fewer full-time employees, even if the employee was working.
Do I Need To Apply For Employee Retention Credit The Same Way I Applied For Paycheck Protection Program?
In order to receive PPP loans, you were required to apply through the SBA. Unlike PPP, there is no “application” for ERTC. You simply claim ERTC tax credit by verifying that you are legally entitled to it – just like any other tax credit. The process is simple:
◉ To claim an ERTC tax credit, a Form 941 Employer Quarterly Tax Filing is filed.
◉ To claim an ERTC credit for prior quarters, an amended form (Form 941-X) is filed to reduce your current quarter’s tax contribution and apply for a refund.
◉ You can even estimate the ERTC credits you will receive in advance of allocating payroll so you can file a Form 7200 to obtain a cash advance right away.