What is ERTC (Employee Retention Tax Credit)?
The Employee Retention Credit under the CARES Act encourages and rewards businesses to keep employees on their payrollduring the pandemic. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
(UPDATE) Businesses can receive up to $26,000 per retained employee for 2020 and the first two quarters of 2021. Businesses are evaluated on each individual quarter so a disqualification on one quarter doesn’t mean a business is not eligible at all.
The program has sunset; however, employers may still submit an application and receive cash credits if approved for a short period of time.
Eligibility?Does your business qualify?
Generally stated, there are two primary ways a business that was open and operating in 2019 and 2020 can qualify for ERTC:
- Governmental shutdown or partial shutdown- Any business that was forced to shut down for any period completely or partially is eligible for ERTC during the period of shut down.
- Loss of Revenue- Any business that as suffered a loss of gross revenue of 50% in any quarter of 2020 or 20% loss in 2021 qualifies for ERTC in the effected quarters.
- New businesses open in 2020 with less that $1 Million in gross revenue are eligible for ERTC in 2021 only.
- Owner’s W-2 income and/or relative’s W-2 income are not eligible for ERTC
- Businesses that have received forgiven PPP funds are still eligible for ERTC
The Process
Just like filing your taxes, the process can be tedious and time consuming. There are numerous requirements that must be satisfied to verify eligibility and little landmines that must be avoided. There are loopholes available to assist businesses who initially don’t qualify. A checklist of documented evidence must be adhered to with very little grey area to determine a business’s eligibility. The IRS can take months to process a request and even more time to receive a check. Slowdowns can be dramatic if the IRS makes follow up requests.
A business must have filed all its quarterly payroll reports (Form 941) to begin the process.
If you receive ERTC funds you will have to file an amended tax return for the years you received the credit.
Why use Revenue Avenue?
Our associates and in house team of accountants and of counsel business attorneys have been assisting small to midcap businesses through a variety of ups and downs for nearly 20 years.We assist with all levels of business from start up to exit and our process is streamlined.
In as little one business day, we can determine your eligibility and provide you an estimate of your ERTC funds you can expect.
There is no cost for our initial consultation and review. WE offer a no fee guarantee if a business does not receive an ERTC.
Attorneys and accountants charge by the hour to process these claims with no guarantee of results.
LET REVENUE AVENUE SAVE YOU MONEY, TIME AND ENERGY AND ENSURE YOUR SUCCESS TODAY. CALL OR CLICK HERE FOR A FREE CONSULTATION.
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