Maybe you’ve heard about the Employee Retention Credit (“ERC”) or possibly not.
Either way, this is your guide for all the information you are curious about regarding the Employee Retention Credit and why you should at least check to see if your business is eligible for ERC.
What is it?
According to the IRS, “The Employee Retention Credit is a fully refundable tax credit for employers equal to 50 percent of qualified wages (including allocable qualified health plan expenses) that Eligible Employers pay their employees.” It applies for wages paid after March 12, 2020, and before January 1, 2021. The maximum amount an employer is qualified for per employee is $10,000 per calendar year.
Who is Eligible?
The ERC is available to any business that has employees. Your business needs to meet only ONE of these two criteria:
- Fully or partially suspend operation during any calendar quarter in 2020 due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19; or
- Experience a significant decline in gross receipts during the calendar quarter.
What can I use the funds for?
These are credits, so they don’t have to be spent on anything specific. You can use them to pay down business bills that have piled up. You can also reinvest the money into new equipment for your business. Heck, you can even give your staff a nice bonus for working during all this craziness. It really is up to you.
You have the info, now what?
If you think you might be eligible or if you’re still not 100% sure, all you have to do is book a meeting with our team. So far, our clients have received over $2M! It averages out to about $140,000 per business.
How does it work?
Our team can apply for ERC on your behalf. Even if you’ve filed your taxes for 2020, our team can amend your taxes to ensure that you get the ERC. This is how the process works.
- You schedule a meeting wtih our team to see if you’re elgible
- We gather your information to make a determination and estimate how much you will receive.
- If you want to move forward, we create and send you a proposal for a deposit for our services
- We complete the process and you receive a check
- Once you have your funds we bill you for the remainder of our fee minus the deposit
If you’ve got any questions, please reach out. If you haven’t already checked to see if your business is eligible for the Employee Retention Credit, book a meeting with us. It takes about 15 -30 minutes to check and it could help you with your business expenses.