What are Employee Retention Tax Credits &applying for employee retention tax credit
The ERTC was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and provides a credit equal to 50 percent of qualified wages and health plan expenses paid after March 12, 2020, and before Jan. 1, 2021. A per-employee $10,000 maximum of qualified 2021 wages (Q1, Q2, Q3). That is a potential of up to $21,000 per employee!
The 2020 ERC Program is a refundable tax credit of 50% of up to $10,000 in wages paid per employee from 3/12/20-12/31/20 by an eligible employer. That is a potential of up to $5,000 per employee.
In 2021 the ERC increased to 70% of up to $10,000 in wages paid per employee per quarter for Q1, Q2, and Q3. That is a potential of up to $21,000 per employee. Startups are eligible for up to $33,000.
While the ERTC was created in the CARES act along with the PPP Loans – this is not a loan, there is no repayment. There are no restrictions on what recipients of the credit must use the funds.
By answering a few, simple, non-invasive questions our team like the ERTC experts can determine if the company is likely to qualify for a no-strings-attached tax credit. There is no cost or obligation to be pre-qualified.
These are examples of businesses and potential payments
Business Consulting Firm in Newport Beach, California, 19 W-2 Employees; $44,960 Credit
Presentation Design Agency in Nashville, TN, 19 W-2 Employees; $162,979 Credit
Restaurant Ownership Group in Florida, 224 W-2 Employees; $1,120,000 Credit
Restaurant in Houston, Texas, 80 W-2 Employees; $400,000 Credit
Montessori School in Addison, Illinois, 35 W-2 Employees; $175,000 Credit.
Here are the steps a company needs to take with respect to a claim
Start with the 10 simple questions on this site to begin your claim. A business would complete an application questionnaire to be completed online.
2) Upload Data
Business Information Upload your 941 returns, PPP loan documents, and raw payroll data to a secure portal.
3) Credit Calculation By CPA
A CPA would calculate the credit available to the company from the IRS.
4) CPA Application Package
CPA will prepare and help file the company 941-X Amended payroll returns.
5) Companies Get Paid By The IRS
The IRS will process the company credit and mail a checkout.
Section 1-4 can be completed within two weeks, this is subject to how quickly the CPA received the company information, the actual payment will be between 4-8 months this is estimated, and there are alternatives to get paid sooner.
ERTC Business Payments
ERTC Business Payments
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Boston New Times journalist was involved in the writing and production of this article.