Did You Know?
Two new stimulus bills have enhanced and extended the Employee Retention Tax Credits, allowing businesses to claim up to $33,000 per employee in refundable payroll tax credits.
We’ve documented over $40,000,000 in claims for our clients. Trust the experts that go beyond, providing transparent fixed fee pricing and complete end-to-end deliverables.
Check out our video to learn more.
What Does This Mean?
For Business owners, it means that for every employee on your payroll in 2020, you can receive up to $5,000 tax credit, whether you received PPP funds or not.
And it gets better. New provisions increased the credit amount to $7,000 for all four quarters in 2021, for a total of $28,000 per employee!
Common Misconceptions Include:
- The business did not have a revenue decline. Revenue is only one factor; many companies qualify with little to no revenue decline.
- The business was deemed essential. Essential status has no impact on ERTC, and many essential companies qualify.
- The company received PPP1, PPP2, or both, so it doesn’t qualify. Not true; companies that received PPP funds are eligible.
- The business did not shut down, so it doesn’t qualify. Recent guidance allows for claims for companies that experienced partial disruptions.
- The business pivoted when a certain sector was lost, and revenue went up, so it doesn’t qualify. Even if the company shifted, there might be lost income or disruption in “normally serviced” sectors.
For CPAs, we recognize that there may be an advisory conflict or bandwidth issue.
With that in mind, C&A has formed a dedicated ERTC Study team. Our team will:
- Calculate and document the rationale and methodology for your clients
- Submit all forms, including preparation as required
- Coordinate with payroll companies, and
- Monetize the credit.
Sample of C&A Scope of Work
- Executive summary and narrative to support ERTC claims, including contemporaneous documentation,
- 2019, 2020 & 2021 financial review and gross receipts test,
- Detailed executive summary and supporting arguments of the client’s business segment(s) to identify partially or fully suspended conditions due to COVID-19 related to government orders=
- Qualified wage computations analyzing the use of PPP funds for payment of employee wages to optimize the amount of wages qualifying for the ERTC while preserving PPP forgiveness
- Completion of all federal tax forms and additional supporting documentation as required
- Full audit support of periods analyzed
Industries We Serve
Contact us today to make sure you can take advantage of these valuable credits.