Full Refund with ERC CREDIT
The Employee Retention Credit (ERC), sometimes referred to as the Employee Retention Tax Credit or ERTC, is a refundable tax credit for certain eligible businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic.
The ERC is not currently available.
Click Here 📞
The Employee Retention Credit (ERC) stands as a substantial stimulus initiative crafted to empower businesses that demonstrated resilience by retaining their workforce amidst the challenges of the Covid-19 confinement.
Provide responses to a set of questions to accurately determine your eligibility.
The Employee Retention Credit (ERC) is not structured as a loan; rather, it constitutes a refundable tax credit.
Fostering Success: Elevating Businesses and Empowering Their Visionary Leaders.
Breaking it Down Your Virtual Tax Office into Three Easy Steps
Eligibility Check
Provide responses to a set of questions to accurately determine your eligibility.
IRS Filing
Upon approval, we proceed to submit your information to the IRS.
Receive Payment
You can expect to receive a check from the IRS within 4-6 months.
Breaking it Down Your Virtual Tax Office into Three Easy Steps
Do I qualify?
Your business operations were fully or partially suspended due to a government order related to COVID-19.Pass the Financial Impact Test and the Operational Impact Test
Having a workforce of fewer than 500 employees.
Recognizing qualifying wages. The eligible wages per employee are capped at a maximum of $10,000.
There was a reduction in revenue of more than 25%. You experienced supply chain disruptions.
Regarding the capping of ERTC credits, eligible wages are capped at $10,000 per employee per quarter, and the credit is calculated at 50% of the eligible wages for the year 2020. For the year 2021, the credit is calculated at 70% of the eligible wages.
Exploring the Benefits of the Employee Retention Credit (ERC)
The Employee Retention Credit (ERC) stands as a substantial stimulus initiative crafted to empower businesses that demonstrated resilience by retaining their workforce amidst the challenges of the Covid-19 confinement. It accomplishes this by providing refundable tax credit checks. This program offers a host of advantages, including:
Maximum of $26,000 per employee
Funding without limitations (ERC is not a loan)
Flexible distribution of resources
Valid for 2020 & Q1-Q3 2021
Our specialization revolves around an area that often falls outside the scope of most CPAs—payroll taxes. Interestingly, a significant number of referrals we receive originate directly from CPAs who recognize their clients’ specific demands for expert support in managing payroll intricacies, particularly when navigating the intricate process of the ERC tax credit.
Alexander Espanol
CEO
Frequently Asked Questions
Is Repayment Required for the ERC Credit?
No, repayment is not necessary. The Employee Retention Credit (ERC) is not structured as a loan; rather, it constitutes a refundable tax credit. Once we file your ERC claim, we initiate the process to secure a refund check on your behalf.
Is it possible to receive ERC Funds if I have previously received the PPP?
Certainly. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, which was enacted on December 27, 2020, brought about changes to the ERC credit regulations. Among these changes was the provision that permits a company to have obtained a PPP loan and still avail themselves of the benefits of the ERC credit. However, it’s important to note that the same funds cannot be counted twice, dollar for dollar. Rest assured, we consider this factor when handling your ERC credit processing.
Am I receiving more in ERC Credit than I actually paid in taxes?
Just a reminder, this program is based on the payroll taxes you’ve paid, not your income taxes. Any ERC funds that exceed your owed payroll taxes are considered an ‘overdeposit’ of taxes and will be refunded to you by the IRS in the form of a refund check.
Are my wages, or the wages of family members I employ, eligible as an owner?
It depends. Wages of owners who have more than 50% ownership are not eligible. The W2 wages of immediate family members of the owner are also not eligible. However, if an owner has less than 50% ownership, their W2 wages are eligible, along with the W2 wages paid to immediate family members.
Do I have to pay taxes on the ERC Credit?
No, the ERC credit itself isn’t counted as taxable income for federal income tax calculations. However, it’s important to note that you need to subtract the credit amount from any deductible wage expenses. Remember to share the credit details with your CPA when handling your taxes.
When can I expect to receive my ERC Credit?
Here’s a breakdown of the process: You provide us with the necessary documents, and we conduct an analysis without any cost. Typically, the entire process takes around 2-3 weeks from beginning to end. If you decide to proceed, you sign your amended return, and we submit your claim. After filing, refund issuance depends on the IRS backlog. Presently, the IRS has specified a minimum wait time of around 20 weeks for ERC refunds to be processed.
Can I qualify for the ERC if I'm self-employed?
No, if you hold the majority ownership (over 50%) of your company, your wages are not eligible.
Why should I consider using Outsourcing Processing instead of having my CPA handle it?
Absolutely. While your CPA is undoubtedly skilled, the unique challenge with the ERC credit lies in the fact that it’s claimed on your payroll returns, a different avenue from the usual business income tax returns most CPAs manage. This often leads to CPAs not handling this credit, unless they manage your payroll in-house. This situation is also a key reason for the credit being underutilized. Given that CPAs typically don’t deal with it despite their expertise, the credit falls into a middle ground where only a few can effectively navigate it. Interestingly, a significant portion of our clients come to us through CPAs.
With outsourcing processing, you benefit from years of experience in payroll management. This allows us to focus intently on understanding and maximizing the ERC program. Our experience has shown that due to the intricate nature (the ERC tax code spans over 200 pages) and the substantial time investment required to grasp the nuances of the ERC program, very few can effectively optimize this substantial credit for your business.
Concluding Thoughts on the ERTC Credit
Undoubtedly, the ERTC credit stands as a substantial financial aid for businesses grappling with the effects of the COVID-19 pandemic, encompassing both conventional enterprises and nonprofit entities.
Yet, navigating the maze of eligibility criteria and qualified remuneration demands a nuanced understanding, particularly contingent on the employer’s scale.
Regrettably, you must also remain acutely aware of ongoing deceptive schemes that, regrettably, target vulnerable individuals.
For this reason, I strongly advise seeking guidance from a tax expert (such as the professionals at Brotman Law) to ascertain your eligibility, optimize your credit, and shield yourself from potential scams.
Explore the Tax Moves Blog:
We provide wise advice to optimize your taxes, manage your finances, and make your life easier
Contact Us
Do you need help? Let´s Talk
Select any of the options to contact us or schedule your appointment.