Employee Retention Tax Credit FAQs

What is the Employee Retention Credit?

The Employee Retention Tax Credit was developed under several stimulus bills and was put in place to serve as an additional stimulus credit for organizations impacted by COVID-19. This credit can be valued at up to $26,000 per employee and is refundable through payroll, so make sure to work with us to find out what money you may potentially be leaving on the table!

Who is eligible for the Employee Retention Credit?

If your organization experienced a significant decline in gross revenue, or experienced disruption to your business, regardless of essential or non-essential status from things such as social distancing, capacity restriction, supply chain disruption, etc., you may be eligible to receive fully refundable payroll tax credits. Don’t miss out on this opportunity to offset some of those losses!

What are the ways to qualify for the ERTC?

One of the most common ways to qualify for ERTC is through gross revenue declines. However, did you know that your business can also be eligible by having experienced disruptions due to governmental mandates? Watch now to find out all of the ways that you may have not known you can qualify!

Advice for businesses exploring the Employee Retention Credit

Have you taken a look at the ERTC credit before and found that your business didn’t qualify? You may want to take a look back at this since these have evolved since their creation! If your business operations or revenue did not look like it has in past years, those variances may qualify you. Contact us today to explore the ways you may qualify.

Can I still claim the Employee Retention Credit for 2020?

Have you been kicking yourself that you didn’t claim the ERTC credit for 2020? No need to worry – you can still amend this return and claim your refund credit today.

Do I still qualify for the ERC if I took a PPP loan?

One of the most common misunderstandings is that organizations can not claim ERTC if they have already received PPP loans. While this has been true in the past, that is no longer the case. Learn more on how you can dual claim and receive additional funding.

How do I qualify for 2021 for the employee retention credit?

Did your organization experience a revenue deduction in Q1, Q2, or Q3 of 2021 of 20% or more, compared to the corresponding quarter in 2019? If not – do not worry; that is not the only way you can qualify. You can also compare these to the prior periods in 2020. So make sure also to check out Q4 or consider how your business was disrupted due to governmental mandates. Reach out today, and we can help you navigate how you may qualify.

How does the employee retention credit work?

Your business has qualified for the Employee Retention Tax Credit. Great! But what’s next? After being qualified, a calculation will be done on a per-employee basis and you will then receive a fully refundable payroll tax credit for a percentage of the wages you paid individuals during a qualifying period.

How is the employee retention credit calculated?

When it comes to ERTC, we know that the big focus is on how much money you’ll receive. But how are these calculated? For 2020, you can receive up to a 50% credit for the wages you paid an individual during the qualifying period, up to the first $10,000 in wages. And for Q1, Q2, and Q3 of 2021, you are able to receive up to 70% credit for the wages you paid an individual during the qualifying periods. With this math, you can be receiving up to $26,000 in credit per employee.

How long does it take to receive an employee retention credit refund?

We know you are eager to get your money back, but remember, patience is a virtue! You may be waiting around 6-7 months or even longer as the IRS processes these returns, so keep your expectations aligned with what we are seeing.

The employee retention tax credit deadline

While the technical deadlines are far out, you do not want to wait too long since policies from Congress may change through new amendments or a new bill. Do not miss out on this – reach out to us today, and let’s start the process of getting you your ERTC benefits.

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