What is Employee Retention Credit (ERC) or Employee Retention Tax Credit?
This is a Tax Credit that is offered to Employers for keeping the employees on payroll during the pandemic years of 2020 and 2021.
Who gets the credit?
The Employer gets the credit.
How much is the credit?
Up-to $26,000 per employee . In certain select cases more credit is available.
How can an employer qualify for the credit.
There are two main categories under which the employer qualifies for this credit. Employer can qualify under any one of these two categories.
ONE: The employer experienced a reduction in revenue during 2020 and 2021
TWO: The employer experienced a partial or full shut down of the business.
What is partial or full shut down of the business? My business was never completely shut down ! How can I qualify?
The partial or full shut down is not to be taken literally as it sounds.
Then what is full or partial shut down?
That is a fact based quarter to quarter determination. Here are few pointers to help you decide whether you were fully or partially shut down.
- Did your business had difficulty obtaining the supplies it need to do the business. e.g. your business is an auto repair shop and you had difficulty in obtaining the parts to repair the vehicles because the dealerships or other auto parts shops were shut down or had cut down on their hours of operation.
- Did your employee(s) contracted Covid-19 and could not fill all the hours they were supposed to be at work?
- Did the employee(s)’ relatives, spouse, children etc. contracted Covid-19 and the employee(s) could not fill all the hours they were supposed to be at work-because he/she had to attend to the loved ones?
- Did the employee(s) children could not go to school because the school was closed and they had to attend to the children and could not fill all the hours they were supposed to be at work?
- Did the employee(s) could not fill all the hours because the child(ren) school was now online and he/she had to adjust to the need?
- Your business had to adopt to the Covid-19 by mandating temperature checking, masking, social distancing etc.
These are just a few points/issues to consider if your business was partially or fully shut down to qualify for the Employee Retention Tax Credit.
My CPA / Tax Guy / Accountant said since I had no reduction in revenue so I don’t qualify
Your accountant is only looking at one of two ways you can qualify for the ERC.
I received the PPP loan. Do I still qualify?
Absolutely.
The calculation changes but you can apply for and get ERC Refund check even when you have received PPP Loan.
Do you have any success stories?
We don’t like to brag but yes we do:
How can I apply for this credit? What do you need to get started?
Did you experience your gross revenue was lower in 2020-2021
If YES then provide following items
Income Statement for every quarter of 2019, 2020 and 2021
If NO then provide following items
- Form 941 for every quarter of 2020 and 2021.
- Employee Quarterly Wage Report. Each employee’s gross wages for each quarter of 2020 and 2021.
- Amount of PPP loan received in Draw 1 and Draw 2 ( We don’t need the paperwork, just the amount)
- Are you paying Health Insurance for your employees? If yes the amount paid in 2020 and 2021. If no ignore this.
- Copy of voided business bank account check.
- Copy of the business owner’s driver license ( to file documents electronically to IRS to expedite the process)
I would like to talk to a live person before I can decide.
Give us a call: (951) 234 5175 x 3 and schedule a time to speak
Send us an e-mail: marketing@accuacct.com and we will call to schedule actime to speak
Fill Contact form: Fill out our contact form and we will call to schedule a time to speak
I saw many companies approaching me to apply for ERC whom to trust?
There are many unscrupulous companies that came into existence just to do the Employee Retention Tax Credit.
Check if the owner/manager of this company is a CPA or Enrolled Agent.
Our owner is a CPA and Enrolled agent license to provide Tax Advice in all 50 states
Check to see when the service provider came into existence. Is it a stand-by-the-night?
We are in business for more than 20 years.
Do they provide any other service? Like accounting, tax returns payroll or they only do ERC?
We provide full array of service accounting, tax returns preparation, payroll. We are providing ERC work because we saw plenty of companies that came into existence just to do ERC and then disappear.
Do they collect the IRS refund check and then give you the money?
We don’t touch your refund check.
IRS mails the refund checks to you directly.
We work on good faith and respect.
They have beautiful web site with lots of pages and information and graphics.
With current technological advancements creating attractive web site is not difficult.
Check if they have a physical address listed on there.
Check if they have license holders name and license they hold listed there.
Do they request all the information uploaded to their web site before you get to speak to anyone?
There are plenty of unscrupulous people who have created the fancy looking web sites to lure business owners and then they disappear.
See if they can back up their claim of refund received by their client.
There are many web sites who claim to have received refunds for their clients with fancy looking graphics.
Check out our web site where we have listed the actual results of refunds received by our client.
Each line item is supported by actual IRS transcript or letter.
How much do you charge?
Our fees are dependent on the complexity, number of employees and other factors. So call us
It is hard to quote a one fee for all. So call us.
No upfront fees.
We provide a written estimate of the fees before we do the work.
So call us
When does this ERC Expire?
Time is running out. The ERC will start expiring in a sliding scale beginning 07/01/2023.
However if Congress decides to pull the plug it can expire any day.
