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Latest Tax Incentive for Business Owners
Employee Retention Credit
Get up to $26,000 per employee in cash refunds for 2020 & 2021
If your business has been affected by the pandemic you will qualify. Even if you received a PPP Loan, many businesses still qualify.
The Employee Retention Tax Credit (ERC) is a refundable tax credit designed to reward business owners for retaining employees throughout the COVID-19 pandemic. The Employee Retention Credit is available to both small- and mid-sized businesses. It was signed into law on March 27, 2020, as part of the CARES Act. The bill was significantly expanded in 2021.
Business owners impacted by COVID-19 can claim up to $5,000 in refundable tax credits for each employee on their payroll in 2020 and up to a $7,000 credit per quarter (excluding Q4) for each employee in 2021.
ELIGIBILITY
Who Can Claim the Employee Retention Credit?
- If your business operations were impacted or changed during an applicable calendar quarter due to a COVID-19 related government order.
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For quarters in 2021, If your business revenue dropped by more than 20% compared to the same quarter in 2019 or 2020 or the immediately preceding quarter.
There are many different ways to qualify!
Did You Know
“Businesses That Received PPP Loans In 2020 Or 2021 Can Still Claim The ERC”.
Find out if you are eligible and we will help you to estimate your potential tax benefit.
1
During this step we will see if you qualify and for how many quarters.
2
During this step, we will require payroll documentation and will calculate and prepare all applicable forms.
3
We are actively working with business owners in every industry to help them claim this lucrative tax break. Most businesses qualify in some way based on the various time consuming tests.
Our close ties with industry experts and hours and hours of reading through tax code and law allow us to streamline the application process for our clients.
The Value
The Employee Retention Credit is currently one of the largest credits available to business owners, delivering thousands of dollars in credits per employee with qualified wages.
Depending on the analysis, you can receive up to $26,000 PER employee.
- 20% drop in quarterly revenue
- Numerous projects were canceled or delayed to COVID-related disruptions
- Delayed production timelines caused by supply chain disruptions.
Schedule a free analysis with our team to learn more.
We’ll discuss your eligibility and help estimate your potential tax benefit.
Law Firm
Q2 - 2020 ERC Qualifications
- Mandatory state shut down, including closing of the courts. Courts having been closed or restricted to non in person meetings.
Q2,Q3 -2021 ERC Qualifications
- 20% Decrease in revenue due to taking on less cases during COVID when compared to previous quarters.
Manufacturing Firm
Q1, Q2, Q3 - 2021 ERC Qualifications
- Supply chain issues
- Reduction in capacity due to social distancing rules
- Partial shutdown of operations
Ready to get Started?
experts to learn more.
Frequently Asked Questions:
Payroll Report outlining all payments, deductions, contributions and taxes for each employee for each paycheck during your ERC eligibility period.
Quarterly tax document. Form 941.
Statement substantiating revenue reduction, supply chain issue or mandated business closure.
Did you receive a PPP loan?
Sign
We help you file for this program by amending your 2020 and 2021 payroll tax returns. This entitles you for the up to $26K ERC credit as outlined in the CARES Act.
The ERC program stopped after the 2021 tax year. However businesses can still amend their payroll tax returns and receive a check by claiming the credit. We help you amend the return so you get the max money the fastest.
Yes! The rules have changed where people can get ERC even if they got PPP money. Although if you did receive the PPP Loan, the calculations are more complex.
It depends on the IRS Processing times and can not guarantee an exact timeline, but we have seen refunds typically within 3-4 months.
Yes – You can view more about the Employee Retention Credit Program on the IRS’ Website https://www.irs.gov/newsroom/new-law-extends-covid-tax-credit-for-employers-who-keep-workers-on-payroll
Absolutely not. This is a legal program from the IRS. We ensure you get the maximum credit.
Our service charge is based on a percentage of the credit recovered. We calculate and provide our fee with our free analysis. You can choose to proceed or not at that time.
Of course. The challenge is the ERC credit is taken on your payroll returns and not through your business income tax returns, which is what most CPA’s handle. Because of this most CPA’s don’t process this credit, unless they process your payroll in house. This is also a big reason why this credit is so underutilized. Since CPA’s don’t typically handle it and they are the tax experts, it has mostly fallen in a middle ground where few are able to effectively process the credit. Many CPA’s do not have time to become experts on this credit. We have spent hours and hours reading through the tax code for our clients.
At Your ERC Experts we have decades of payroll experience, which has allowed us to specifically focus to understanding and maximizing the ERC program. In our experience we have found that due to the complexity (the ERC tax code is over 200 pages) and time investment necessary to understand the ERC program, very few are able to effectively maximize this sizeable credit for your business.
Qualifications:
We will ask you to upload a statement substantiating your revenue reduction. This usually involves attaching a summary P&L for 2019, 2020 and 2021 by quarter.
Yes! There are two possible qualifications for 2020: revenue reduction, or a “full or partial shutdown of your business due to COVID-19”. Specifically the IRS describes this as “A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.” Below are several examples of qualifying events:
Example 1: A restaurant must close or limit its on-site dining. Such as having to close down every other table, due to COVID-19 restrictions.
Example 2: A business that needs to meet with clients in person and has to cancel meetings due to COVID-19 restrictions.
Example 3: A business has to reduce their operating hours because COVID-19 restrictions and cleaning requirements.
Example 4: A business had delayed production timelines caused by supply chain disruptions.
Example 5: A business with a planned event has to cancel that event, or restrict the amount of people who can attend due to COVID-19 restrictions.