Understanding the ERTC Tax Credit
The Employee Retention Credit (ERTC) was established by the CARES Act and is designed to provide financial support to businesses affected by the COVID-19 pandemic. The ERTC is a federal tax credit available to employers who retain their employees on the payroll throughout the pandemic.
The ERTC offers eligible businesses a refundable payroll tax credit of up to 50% of eligible wages paid up to $5,000 per employee for employment between March 12th and December 31st 2020, and up to $7,000 per employee for employment between January 1st and June 30th 2021. This credit can be used to help employers offset the costs of maintaining or expanding their workforce during this difficult time.
Businesses who are eligible to receive the ERTC should understand the details of the credit, the benefits of taking advantage of it, and the deadlines for claiming the credit. Taking the time to understand and properly claim the ERTC is important, as it can greatly improve business bottom lines and provide much-needed relief to businesses that have been financially impacted by COVID-19.
It’s essential that employers review the details of the ERTC to understand the eligibility requirements, filing deadlines, and the potential financial benefits of the credit. There is also a wide range of resources available to assist businesses in understanding the ERTC and in filing for the credit. Businesses should take advantage of these resources to ensure that they maximize their potential for financial relief.
By taking the time to understand and properly file the ERTC, businesses can potentially benefit from a significant financial boost. The ERTC can be an essential source of financial assistance for businesses that have been affected by the COVID-19 pandemic and taking advantage of it is a great way to begin the recovery process.
Eligibility for ERTC Tax Credit
The ERTC is a valuable tax credit for employers who retain or hire workers in 2020 and 2021. It provides businesses with a tax incentive to keep or bring back employees and helps employers retain current or hire new employees. With this tax credit, employers can receive a credit up to $5,000 per employee.
To be eligible for the ERTC, businesses must meet several qualifications. Qualifying businesses include companies with less than 500 workers, nonprofits, self-employed individuals, and certain government organizations. The business must have experienced a reduction of at least 20% of its quarterly wages compared to the same quarter in the previous year. Additionally, businesses may receive the credit if their operations were impacted by federal, state, or local government imposed coronavirus restrictions.
The ERTC serves as a rewarding incentive for employers to both retain and hire new employees. Furthermore, this tax credit is designed to assist employers in a difficult financial time by refunding a portion of employee wages. If your business meets the stated qualifications for the ERTC and you are looking for assistance with the tax credit, we are here to help. Contact us today for more information on how to apply for this employee retention tax credit.
Qualified Wages for the ERTC Credit
The Employee Retention Tax Credit is a significant post-COVID19 business incentive program, available to eligible employers to help employers retain and rehire employees that experienced a pandemic-related loss from operations. Qualified Wages are defined as wages paid to an employee after the onset of the pandemic period that the employer incurred financial hardship due to the COVID-19 pandemic. Employers may be eligible to claim a tax credit up to 70% of the amount of qualified wages they pay to each eligible employee.
By receiving Qualified Wages, employers can reduce the overall cost of keeping the employees on the payroll and maintain their pre-pandemic levels of employment, without risking an economic crisis. Furthermore, by working with an ERC Tax Credit consultancy, employers can ensure compliance with all relevant regulations, increase the chances of obtaining the full credit, and gain access to additional consultation services.
Qualified Wages provide the opportunity to invest in the workforce and help maintain operations. This program enables employers to cover a portion of the cost of salaries while enjoying tax benefits such as a refundable tax credit. With the right set up, employers can reduce expenses and gain the opportunity to reinvest in their employees.
The Employee Retention Credit program is designed to address the challenges of a pandemic-induced financial crisis. Employers have the ability to reduce costs while continuing to offer the same pay and benefits to employees. Maintaining a strong employee base is vital for successful business operations and the ERTC program can help employers do this without experiencing a devastative financial cliff.
Whether you’re a business looking to employ in the status quo, or one looking to expand during a period of crisis, the Qualified Wages for the ERTC Tax Credit provides a unique and compelling route to take. With the right solutions and help, this program can be used to mitigate the risk while maintaining the health of the business during challenging times.
Maximum Credit Amount under the ERTC
The Employee Retention Credit (ERTC) is a tax incentive from the United States Internal Revenue Service (IRS) designed to help businesses keep their employees employed despite challenging economic circumstances. Qualifying businesses can receive a tax credit of up to $5,000 per employee, per calendar quarter, against qualified wages and the employer portion of Social Security taxes each quarter during the COVID-19 pandemic.
But what’s the maximum amount a business can get from the ERTC? Good question! The maximum credit amount changes based on the time of year and the number of employees you have. Generally speaking, it can range from a minimum of $5,000 per employee, per calendar quarter for businesses with fewer than 500 full-time employees, to a maximum of $7,000 per employee, per calendar quarter for businesses with more than 500 full-time employees.
For those businesses with fewer than 100 full-time employees, the ERTC also allows for the use of qualified wages paid after March 12, 2020, and before January 1, 2021, to be counted towards the credit calculation. For businesses with more than 500 full-time employees, any wages paid in the year 2021 aren’t eligible to be applied to this credit.
It’s important to note that if qualified wages paid to a particular worker exceeded the $10,000 cap during any one quarter, the associated tax credit would be limited to the maximum amount of eligible wages for that quarter, and not to exceed $7,000.
In order to get the maximum credit amount under the ERTC, it’s important to understand how your business size and calendar quarter affects the credit calculation. If you’re not sure whether your business qualifies, or how to calculate your maximum credit amount, it’s recommended that you speak with a professional about what options are available to you.
The CARES Act and ERTC
In an unprecedented move, the United States Government recently authorized the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to put measures in place to help mitigate the economic fallout from the global Covid-19 pandemic. Among the various initiatives included in this Act is the much talked-about Employee Retention Credit (ERTC).
ERTC is an employee incentive meant to reward companies who retain their employees during this difficult economic period. The program provides employers with a refundable tax credit equal to 50% of qualified wages paid to their workers. This can be an enormous help to many employers who are struggling to keep their staff on payrolls as revenue from business operations has been severely diminished.
With the help of the ERTC, employers can now choose to keep their workers on payrolls while receiving a significant tax credit for their expenses. Such an incentive gives employers a much-needed financial boost, and helps employees keep their employment and livelihoods in these uncertain times.
Ultimately, the ERTC featured in the CARES Act is a game changer for businesses as well as workers. Employers have the opportunity to reduce their costs while retaining the employees they need in order to stay afloat, and workers get to keep their jobs in the midst of an ever-changing financial environment. It truly is a win-win for everyone involved.
How to Claim the Employer Retention Credit
The Employee Retention Credit (ERTC) is a valuable 2020 tax credit designed to help businesses struggling due to the impact of the COVID-19 pandemic. It reimburses employers for up to 50% of wages paid to employees between March 12, 2020 and December 31, 2021. Are you eligible to take advantage of the ERTC?
First, you must have experienced a partial or full shutdown of operations or a significant decline in gross receipts. Second, your business needs to have fewer than 500 full-time employees as of March 12, 2020. If you meet the preceding criteria, you could be eligible to receive the credit.
To claim the ERTC, you’ll need to file Form 941, Employer’s Quarterly Federal Tax Return, and fill out and attach Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund. You’ll also need to supply proof of eligibility and wages paid to employees, including a copy of the employee’s W-2 form.
The key to successfully claiming the ERTC is to understand the rules and maximize the credit. Utilizing the help of a professional, like a CPA or tax advisor, could save you time and stress as you navigate the necessary paperwork.
Eligible businesses can receive the full benefit of the ERTC, potentially even a bigger benefit than expected through the Paycheck Protection Program. The ERTC should be a top priority for businesses looking to reduce their tax liability in 2021. Proper planning and claiming of the ERTC could help your business emerge from the pandemic on solid footing.
Eligible Employers for ERTC Tax Credit
The Employee Retention Tax Credit (ERTC) is a great opportunity for employers who have been affected by the coronavirus. However, only certain businesses may qualify as an eligible employer for the ERTC tax credit. To be considered eligible for the ERTC, businesses must have a significant decrease in gross receipts, operate in the U.S., have a trade or business, and have less than 500 employees. In some cases, employers in the restaurant, hospitality, and certain other industries with more than 500 employees are eligible if they meet certain criteria.
The government set the criteria to make sure that businesses can clearly see if they qualify. If the company’s gross receipts are down more than 20% when compared to a comparable period in 2019, then that business would fall into the eligible employer’s category for the ERTC. Other criteria that must be met include whether or not the business has 500 full-time employees or less, the company must have paid salaries or wages, and the company must have a trade or business in the United States.
The ERTC is available for both large and small businesses, but it is important to remember that businesses must still meet the eligibility criteria to qualify. Even if a business meets the criteria, it is up to the employer to determine whether or not they should apply for the ERTC tax credit. If a business is eligible, they can receive up to $5,000 per employee, and the credit amount is based on wages paid and how much the business experienced a decrease in gross receipts.
This tax credit has been designed to help employers who have been financially impacted by the pandemic. Businesses that may qualify for the ERTC should carefully evaluate their situation to determine if they are eligible and should contact a tax professional for advice before taking any action to apply for the credit.
Companies Impacted By COVID-19
The pandemic has had a wide-reaching impact on business operations worldwide. Companies large and small have been forced to adapt and respond to immense economic and safety challenges brought on by the novel coronavirus. The global crisis has resulted in numerous companies having to restructure, close, and transform their services in order to survive. From travel and hospitality to food and tech, no sector has been spared from the impact of the virus.
The business relief measures undertaken by governments to mitigate the economic effects of the virus have helped provide some support, yet many companies are struggling with the burden of increased expenses and a downturn in revenue. Receiving the right advice and government support can be critical for many businesses looking to keep their operations running and employees engaged.
The Employee Retention Credit (ERTC) provided by the US government can provide businesses with up to $5,000 per employee towards the costs of maintaining employees on payroll during this difficult period. Companies with more than 100 full-time employees are eligible for this tax credit, and can benefit from receiving them back as refunds for 2020 or carry them forward into 2021 or 2022.
By helping to reduce the costs associated with keeping employees employed, the ERTC allows companies to focus their efforts on maintaining their business and transitioning into a thriving post-pandemic economy. Taking advantage of this credit can make a key difference in remaining operational in the current environment- as well as in the future.
As the situation continues to evolve, companies need to stay up-to-date on the latest developments and advice on how to keep their operations afloat. Consulting with trained professionals who specialize in the Employee Retention Credit may be the best course of action for companies looking for maximum relief. Through their insights and expertise, companies can gain the best understanding of all the government support options that are available to them during these difficult times.
Tax-Exempt Organizations Who Are Eligible to Claim the ERTC
Tax-exempt organizations play an important role in the business world. Whether they are charitable, religious, educational, or nonprofit in nature, these organizations are provided with specific exemptions from certain tax obligations and regulations. The Employee Retention Credit (ERTC) program is an additional tax-saving opportunity available to certain types of eligible tax-exempt organizations.
Essentially, the ERTC offers these tax-exempt entities a refundable payroll tax credit equal to 50% of wages paid after March 12, 2020 up to $5,000 per employee. In this case, eligible tax-exempt organizations can include entities with 501(c)(3) and 501(c)(19) status, as well as any local, state, tribal, or federal government organization.
To make sure you are an eligible tax-exempt organization you’ll need to contact the Internal Revenue Service (IRS) or a tax professional to get specific information and advice. Make sure to include any Forms 941 and documentation of wages paid to your employees to qualify for the ERTC.
The ERTC is now available until December 31, 2021 as part of the recently updated Consolidated Appropriations Act. Now is the perfect time for eligible tax-exempt organizations to take advantage of this unique tax-saving opportunity and maximize savings on payroll taxes. All it takes is a bit of research and the right professional support.
How to Calculate the ERTC Credit
The Employee Retention Credit (ERTC) is a valuable benefit offered to certain businesses to help them retain employees on their payroll during the COVID-19 pandemic. The ERTC is available to employers that meet certain criteria such as an average of fewer than 500 employees in 2019 or certain businesses that must actively cease operations due to government orders. The ERTC enables employers to receive a tax credit of up to 70% of employee wages paid from March 13, 2020 – December 31, 2020.
Calculating the ERTC is relatively simple. The credit is equal to 50 percent of the wages paid to the employee during the covered period, with the maximum amount for any employee capped at $10,000 in wages per quarter. To calculate the ERTC, you will need to know the amount of wages paid to the employee on either a quarterly or monthly basis. You’ll also need to know the average number of full-time employees you had in the year 2019. With this information, you can calculate the ERTC and enjoy the benefit of having the credit applied to your tax return.
When calculating the ERTC, it’s important to consider other available credits or wage expenses that can use the same wages. To maximize the benefit of the ERTC, try to plan accordingly and attempt to ensure the allocated wages are not used on other qualifying expenses. Similarly, if your business was closed due to a government enforcement, you may want to make sure to include that period in your calculations to maximize the amount of credit available.
In conclusion, businesses can take the advantage of the Employee Retention Credit (ERTC) through calculating their actual expenses. To calculate it, you will need to know the wages paid to an employee within the specific period, and the average number of full-time employees in the year 2019. Businesses should also take into account other credits or expenses that may use the same wages, and keep in mind that if their business was temporarily closed due to any government enforcement, they should include that period in their calculations.
Documentation Must Be Provided for Claiming the ERTC
The Employee Retention Credit (ERTC) provides an important tax break for companies who continue to pay employees’ wages and salaries during the pandemic. However, businesses must understand that in order to benefit from this program, they must ensure they are meeting the eligibility requirements. And providing sufficient documentation will be essential to claiming this credit and properly receiving reimbursement for expenses associated with wages paid.
Businesses must ensure that they are keeping accurate and organized records to corroborate the numbers reported on the Employment Retention Tax Credit form. This would include tracking all payments of qualified wages, and maintaining a record of reforming to the IRS to claim the credit. It’s important to be aware that IRS may audit your records if questions arise, as any overstated amounts claimed can result in fines, penalties and even interest.
In order to maximize the benefits that can be gained from the Employee Retention Credit, companies should document the form of payment, the amount, and how it is applied as wages, as this information will be necessary when filing for the credit. It is essential to maintain a separate record of business expenses due to Covid-19, and to use a methodical approach to organize all expenses. This way, businesses can more easily explain the which assets and expenses they believe qualify for the ERTC.
Given the complex nature of the Employee Retention Credit, businesses that wish to claim the credit should consider gaining assistance from qualified professionals. This could be a great asset in filing ERTC, as they can help navigate the course and avoid being overwhelmed with the intricacies of the program. An important takeaway here is that there is great potential for businesses to benefit from this credit if eligibility requirements are met and proper documentation is provided.
Employee Retention Tax Credit Requirements
Many businesses have been drastically affected by the COVID-19 pandemic, which is why the IRS and the US Treasury Department created the Employee Retention Tax Credit (ERTC), a financial incentive that encourages employers to retain employees and help lessen the economic burden of COVID-19. To qualify, businesses must meet certain requirements and be able to demonstrate various criteria.
Employers must have been operating during 2020, before the pandemic. They must have experienced either a full or partial shutdown due to certain governmental orders related to COVID-19, or experienced a decline of at least 50% of their gross receipts in the 3rd quarter of 2020 when compared to the same quarter in 2019. They must also have fewer than 500 employees and be able to demonstrate that they have experienced significant financial hardship due to the pandemic.
Businesses that qualify can receive a refundable tax credit of up to $5,000 per employee for wages paid for any period between 3/13/20 and 12/31/21. Companies may also offset the cost of health plan premiums with this credit. To be eligible, employees must be retained for at least 90 consecutive days and must have been employed as of 3/13/20.
The pandemic has presented unprecedented challenges to businesses across the United States, but the ERTC provides an opportunity to ease the burden for those who qualify. By understanding the eligibility and qualification requirements, employers can take advantage of this important tax credit and protect their employees and their bottom lines.
Required Documentation must for Claiming ERTC
Understanding the Employee Retention Tax Credit can get a bit complicated. But, it’s essential for organizations to understand how to claim this credit and the documents that must accompany it. The Employee Retention Tax Credit (ERTC) was created to help businesses that are feeling the adverse effects of the COVID-19 pandemic. The credit can be claimed by employers who have had their operations partially or fully suspended as a result of government orders, or have experienced a significant decline in gross receipts during 2020 or 2021.
In order to properly claim the ERTC, employers should be aware of the documentation that must be gathered and submitted. Employers should collect documentation for the substantiation of their employment tax credit amounts, including gross receipts, wages for each employee, and applicable hours of service. Employers must also provide evidence of each employee’s wages associated with the credits, as well as a timeline of when employee wages were paid with all supporting documents evidencing the employment relationship.
In addition, employers must keep track of their gross receipts, as this can be used to calculate their credit amount. This can be accomplished through a 10-K report or other records. It is also essential for employers to provide detailed information about their employees throughout the year, such as paystubs, payroll records, and other documents.
Employers must keep track of all of their relevant information associated with the credit, from payments made to employees to payroll records. Proper documentation is essential to ensure a successful ERTC claim. By following these steps, it is possible for employers to receive the assistance they need from the IRS in the form of the Employee Retention Tax Credit.
Documentation Requirements for Different Entities
C ompanies of all sizes need to understand the documentation requirements for different entities in order to gain access to the Employee Retention Tax Credit (ERTC). Every business should understand the documentation it needs to gather and submit in order to receive the ERTC.
It is important for companies to know the paperwork necessary for filing for the ERTC. Depending on the setup of the business, different documents may need to be prepared or updated to be able to file for the ERTC. Things like payroll tax returns, W-2 forms, and employee wage forms will need to be prepared and submitted for the ERTC.
However, the documentation requirements don’t start and stop with the ERTC. Companies will also need to prepare documents like their income statements, balance sheets, and return of capital in order to get approved for the ERTC. Companies should also take the time to review their current accounting systems and update them accordingly.
Things can get complicated for different entities trying to apply for the ERTC, creating an extra layer of difficulty when it comes to documenting their eligibility. Depending on the type of entity applying, different types of documents may be necessary. For example, S-corporations may need a statement of changes in beneficiaries and LLCs may need to provide documents of corporate authority.
The documentation for ERTC applications can be a daunting process for companies. However, companies who have a clear grasp on the documentation requirements for different entities will be in a much better position to successfully apply for and receive the ERTC. Investing time and effort into gaining a thorough understanding of the necessary documentation for the ERTC will help businesses get the most out of the ERTC.
Penalties for Unlawful Claim of the ERTC Credit
Having the Employee Retention Credit (ERTC) is a great financial benefit for businesses that have been affected by the COVID-19 crisis. This is why the IRS and many states have established laws and regulations to govern the usage of this credit. Unfortunately, there are some individuals who choose to unlawfully take advantage of the ERTC, directly costing the government, corporations, and other businesses millions of dollars.
When someone is caught making an unlawful or false claim for the ERTC, they may be subjected to significant monetary fines from the IRS. The punishments could include ample fees as well as prison time. Corporate fraud can also result in serious legal action including exorbitant fines and possible criminal charges. In addition, companies that claim the ERTC fraudulently could be subject to hefty financial penalties in the form of additional taxes and fines.
It is important that companies understand the guidelines associated with the ERTC and only make claims based on factual evidence. Any false or fraudulent claims must be avoided, as the consequences can be both serious and financially devastating. Furthermore, companies should be sure to consult an expert when processing their claims, as there are a few complex rules that must be followed closely in order to avoid unintentional violations.
Unlawfully claiming the ERTC can have disastrous long-term consequences on both individuals and companies. In order to protect their tax status, businesses must make sure they are in compliance with the regulations that govern the ERTC and only make factual claims based on reliable facts.
Tax Fraud Involving ERTC Credit
The Employee Retention Credit (ERTC) is a tax credit that rewards companies for the costs associated with keeping employees during a difficult economic period. This credit was passed in 2020 as a response to the economic crisis caused by the COVID-19 pandemic. It was designed to encourage businesses to retain workers and keep them off the unemployment rolls.
Unfortunately, fraudsters have taken advantage of the ERTC by filing false tax credits in order to get a larger refund. In some cases, they have even created fictitious employees to take advantage of the tax credit. Every year, the IRS loses billions of dollars due to fraudulent tax credits.
The best way to avoid fraud of any kind is to thoroughly research the ERTC tax credit before filing, and ensure that all information provided is correct. This can help to prevent any potential fraud cases from occurring.
Authorities have also urged taxpayers to be careful when dealing with third-party ERTC tax credit companies. Many of these companies are attempting to take advantage of people who are not aware of exactly how the ERTC works. Shady firms can often overcharge, provide misleading advice, and file incorrect tax credits.
It is also essential to pay close attention to Participation Agreements and Privacy Statements when it comes to filing tax credits. These documents can provide a roadmap of the filing process and help ensure that all involved parties are on the up-and-up.
Though the ERTC is a fantastic way to help businesses stay afloat during difficult times, it is important to be mindful of potential fraud and scams. The best way to protect yourself is to do your research, trust your instincts, and be aware of the potential pitfalls.
Penalties for False Claims
Making false claims has become a global phenomenon and governments around the world are taking action. From financial fraud to tax fraud, making false claims can come with severe penalties. The employee retention tax credit is no different. For businesses looking to take advantage of this credit to cover their payroll costs, it is important to be aware of the consequences for false claims.
Falsely claiming the employee retention tax credit can come with serious financial penalties and even criminal charges. The IRS levies substantial civil penalties for false statements including a $250,000 fine or two-year prison sentence for a company that knowingly files a false claim. Up to 10 times the original credit can also be revoked in the event of fraudulent claims. It is also important to note that penalty or revocation of funds is not limited to businesses. Individuals implicated in filing false claims can face additional penalties up to $100,000 if convicted.
It is critical to ensure that all employee retention tax credit claims are valid and accurate. If there is any question as to the authenticity of claims, consult an accountant to ensure accuracy. If you have any additional information related to employee retention tax credit, it is always best to ask an expert to avoid penalties for false claims.
How Can We Help With the ERTC Credit
The ERC Tax Credit is intended to help businesses offset losses caused by the coronavirus pandemic. many businesses are struggling and this credit could make a huge difference in staying afloat. It is designed to provide a tax refund to employers who have seen a decline in revenue this year due to the pandemic. Qualifying employers can get a refund of up to 50% of the wages paid to their employees during the pandemic.
The federal government has been taking steps to address the coronavirus pandemic, and the ERTC is one way they are providing relief. It is a refundable credit that employers can claim if they experienced a full or partial closure, or a drop in revenue due to the pandemic. To qualify, employers must have experienced a decline in business due to the pandemic, either due to a full or partial closure or a drop in revenue.
The ERC Tax Credit can provide businesses the relief they need from the economic pressures caused by the pandemic. It can help businesses stay afloat and preserve their workforce. This could mean saving thousands of jobs that are in danger of being eliminated during this tough time.
At our consulting firm, we can help businesses get the most out of the ERC Tax Credit. We provide a thorough analysis of your current financial and payroll situation to ensure you get the credit you’re entitled to. We can then guide you through the complicated process and paperwork of applying for the credit and claiming the refund. Consider hiring us to help your business stay afloat during this pandemic. Let’s start your success story today.
Our Services for ERTC Claims
The Employee Retention Credit (ERTC) provides business owners with the potential for a large financial benefit. If you are a business owner who has been impacted by the COVID-19 pandemic, you may qualify for a substantial tax credit. The ERTC credit can help you offset the losses you have experienced due to the pandemic and provide you with additional funds for your business.
At Our Services for ERTC Claims, we are experts in helping businesses navigate the complexities of the ERTC tax credit. Our experienced team of consultants help businesses understand their qualifications for the tax credit, develop a strategy for maximizing the credit, and efficiently apply for the credit. We make sure our clients take full advantage of this fantastic financial opportunity provided by the IRS.
We understand how confusing this process can be, so we strive to make it as stress-free as possible. We start the process with an initial free consultation where we evaluate your situation and provide you with personal recommendations tailored to you and your business. With our help, you can rest assured that you are taking full advantage of the ERTC with confidence.
The ERTC can potentially save you a substantial amount of money on taxes. Don’t leave this money on the table! Contact our team at Our Services for ERTC Claims to unlock the potential of the ERTC for your business.
How Our Professionals Can Help Your Business
Did you know that professional consulting services can bring your business immense benefits? Working with the right people who are experienced and knowledgeable can optimize your business operations and help your business to grow. For businesses that are eligible for the ERC Tax Credit, professional consulting services can prove to be even more beneficial.
Our team of experienced professionals can provide advice and support across the different stages of the Employee Retention Tax Credit program. Our services include education and guidance for setting and implementing the program. We will help you evaluate your business to make sure you are eligible, calculate the amount you can receive and also help you prepare for the application process.
We are available to answer query and questions you may have at any stage of the process. Our experienced team will guide you through research, prepare applicable forms, deal with any paperwork and work closely with the authorized government agencies. From answering your questions to the filing of paperwork, our professionals are here to help and ensure your business takes full advantage of this opportunity.
By working with our professionals, you will have the peace of mind that your application for the ERC Tax Credit has been submitted correctly. Professional services guarantee that you have met all the Federal guidelines set and the application process is completed successfully. Let our experienced professionals help your business to grow and maximize your business benefits!
Navigating the world of taxation can be an intimidating mode of planning for any business, no matter the size. One option to consider in difficult tax seasons is the Employee Retention Credit (ERTC), designed to offer relief to businesses directly affected by the ongoing global pandemic. Find out more about what this tax credit can provide for your business.
The ERTC is a tax credit created to assist businesses struggling due to the impact of the COVID-19 pandemic. This tax credit is provided by the federal government to help mitigate the losses businesses have faced, allowing them to qualify for an employee retention credit of up to 80% of their wages. It applies to wages and salaries paid between March 12, 2020 and June 30, 2020.
Fundamentally, the ERTC credit functions as a contribution to business income, meaning that it can be used to offset federal taxes due. It applies to the first $10,000 of wages paid to an eligible employee, with a maximum cap of $5,000 for married taxpayers and $2,500 for all other taxpayers. The credit can be used to reimburse the business for the tax associated with the increased wages. It’s also available to self-employed individuals who receive compensation by making estimated tax payments.
Whether you’re a small business or a larger corporation, it’s important to know your options to ensure your business stays afloat. The ERTC is just one of the many solutions businesses can take advantage of to help weather the economic storm brought about by the pandemic. With the right goals and strategies in place, businesses can take comfort in knowing that help is available. Contact one of our dedicated experts today to see what we can do to help your business succeed.