How Employee Retention Tax Credit (ERTC) can help your business thrive in these uncertain times. Click to Apply.
The COVID-19 pandemic had a major impact on businesses around the world. Many businesses had to close their doors, while others had to significantly limit their operations. As a result, many companies that survived are still struggling to keep employees on the payroll.
However, there is a solution that can help businesses retain employees and stay afloat during these uncertain times.
The solution is the Employee Retention Tax Credit (ERTC).
ERTC was introduced by the US Government in 2020 under the CARES Act. The purpose of the credit was to help companies keep employees on the payroll during the pandemic. This loan is available to businesses with up to 500 W2 employees, including nonprofits. ERTC provides eligible companies with a refundable tax credit of up to $26,000 per employee.
Following times of pandemic-induced financial hardship, the ERTC offers much-needed relief to businesses. What sets this credit apart is that it’s refundable – businesses may receive any excess credit as a refund in cases where the credit exceeds owed taxes. This benefit alone could make a considerable difference for struggling companies.
Does my business qualify?
In order for the ERTC to apply, there are prerequisites businesses must fulfill. Firstly, the establishment must have undergone a complete or partial shutdown because of COVID-19-related decrees from government officials. Secondarily, there must be a marked reduction in gross revenue. If gross receipts dropped by a whopping 50% or more during a certain quarter compared to the same time span in the preceding year, companies have the option to claim credits for all employee wages paid during that quarter. In the case where the business did not take as severe of a hit, and there was a loss of less than 50%, then the credit extends only to those wage-paying employees who did not perform work during the time of suspension.
During these troubling post-pandemic times, the ERTC has rescued suffering businesses by offering substantial financial relief. One of the best ways is through a tax credit that is granted to companies retaining their employees. The outcome is that firms can lessen their payroll expenses and sidestep passing out pink slips to their staff, which is a surefire way to keep their business thriving.
Does ERTC benefit my staff?
The ERTC not only assists with financial struggles, it can also serve as a morale boost for employees. By retaining workers and receiving a tax deduction, businesses display their dedication to their staff. This gesture contributes towards fostering trust and loyalty among workers, ultimately aiding in the long-run prosperity of the company.
Significant financial relief opportunities await businesses that qualify for both the ERTC and another relief program, PPP. The PPP Loan program is an example of a relief program that can easily be combined with the ERTC. Interestingly, a business that secures a PPP loan can still apply for the ERTC. Through this, a business can get twice the benefits – both ERTC and the PPP loan.
How to Apply for ERTC.
The complexity of the eligibility requirements for the ERTC is one reason why many businesses aren’t taking advantage of it, despite its benefits. Sadly, this has led to a lack of awareness of credit. Fortunately, there are resources available to help businesses understand the application process and determine if they are eligible for the credit.
Do it Yourself.
The IRS website offers businesses a helpful resource. By navigating to their site, businesses can gain access to a wealth of guidance on the ERTC. Details provided include eligibility requirements, how to calculate the credit, and specific steps for claiming the credit. Also, be sure to take a look at the IRS’s FAQs page for additional assistance in understanding the credit. This can be a very time-consuming and complex process for business owners.
Utilize a Tax Advisor/CPA.
Businesses can harness the expertise of a competent tax advisor as a useful resource. These advisors are well-equipped to assist companies in assessing their qualifications for the ERTC and in navigating the application process. A tax advisor can also offer guidance on how to capitalize on the credit, for example, by identifying all suitable wages and precisely calculating the credit. Tax advisors deal with all types of business tax and may not be the most experienced in dealing with ERTC claims. They can also be expensive whilst leaving your business liable for any errors in filing.
Use an ERTC Claims Agency.
A third, and popular, method is to use a dedicated ERTC claims agency. These agencies only deal with ERTC claims and are far more experienced than any tax advisor, CPA or a business owner. It has been shown that an ERTC agency can get businesses from 40-140% more in tax credits than even the largest tax accounting firms. By using three teams of qualified and experienced CPAs our recommended agency handles all the complex filing. This leaves you to concentrate on your business and just submit the requested documents on time. That in itself is an enormous benefit to small, or even large, businesses. So even if your business has applied for ERTC before, you may still be entitled to a further tax credit. Inquire today to discover how much tax credit your business could be entitled to claim.
In conclusion, the Employee Retention Tax Credit can be a valuable tool for businesses that were struggling during the pandemic. Companies can reduce labor costs and avoid layoffs by offering tax credits for retaining employees. This can help businesses stay afloat during these difficult times. Additionally, when a business receives ERTC it can help boost employee morale and can even be combined with other relief programs, like PPP. While credit requirements can be complicated, resources are available, by using an agency, to help your company navigate the application process and determine your credit eligibility.
To discover how Employee Retention Tax Credit (ERTC) can help your business thrive in uncertain times simply answer 2 simple questions, and add your contact information. Once submitted one of our fully qualified staff will contact you to guide you through the application process.