Employee Retention Tax Credit (ERTC) Service

Some ERTC Statistics

60%

Businesses surveyed in a Bredin Snap Poll said they were not aware of ERTC.

$87,000

Average ERTC refund amount per customer

$5,000/$7,000

In 2020, an eligible business could claim up to $5,000 per employee annually for ERTC. In 2021, businesses could claim up to $7,000 per employee per quarter, through Sept 30, 2021 (three Quarters)

Combined that would be $26,000 per employee, if your business qualifies for all quarters

“The IRS anticipates 70-80% of businesses are good candidates for taking the Employee Retention Credit.” – Forbes

According to a study done by the National Federation of Independent Businesses (NFIB), the Employee Retention Tax Credit (ERTC) is an opportunity that is unfamiliar and appears to be severely underused by many small business owners. According to NFIB’s research:

• Only 4% of small business owners said they are very familiar with the program. Another 32% said they are somewhat familiar.
• About 8% of owners utilized the ERTC in 2020.
• About 10% of owners plan to take advantage of the tax credit in Q1 and Q2 of 2021.
• Nearly half (47%) of owners report that they might take advantage of the tax credit in 2021.

Too often, business owners, churches, and non-profits are:

• Not aware of the Employee Retention Credit (ERC) and its benefits.
• Believe that their business is not eligible for the ERC.
• Not sure how to calculate the credit.
• Not familiar with the documentation and record-keeping requirements for the ERC.
• Concerned about the additional paperwork and compliance requirements.
• Worried about potential audits or penalties.
• Feels that the process of filing for the ERC is too complex or time-consuming.
• Unsure of how the ERC credit will impact their overall taxes and financial situation.
• Worried that they missed the deadline to file for the ERC.
• Not aware of the potential impact of the ERC on their employees.
• Were told in the past they did not qualify.
• Think it is a loan and has to be repaid (it is a refund).

Qualifying under gross receipts in any calendar quarter qualifies the business to recover expenses for six months.

Taking a PPP Loan is no longer a limiting factor!

What the Employee Retention Credit is NOT!

• It is NOT a Grant
• It is NOT a Loan
• There’s NO INTEREST to Pay for an ERC Credit
• There’s are NO RESTRICTIONS on the use of the ERC Funds

What the Employee Retention Credit IS!

• It is a TAX REFUND for Small Businesses
• It is YOUR MONEY Already Paid in Previous Payroll Taxes
• ERC Credit/Funds are UNLIMITED
• You have up to 3 Year to Claim the ERC Credit
• It’s Based on Eligibility per Quarter, per Employee and MUST BE Calculated Accurately
• IT’S EXTREMELY COMPLICATED

WHAT IS ERC (EMPLOYEE RETENTION CREDIT)?

The Employee Retention Credit (ERC) is a payroll tax refund of up to $26,000 per employee. It was designed by the United States Treasury Department to help businesses that kept employees on payroll during the pandemic.

WHO QUALIFIES FOR AN ERC REFUND (EMPLOYEE RETENTION CREDIT REFUND)?

Any company (including tax-exempt and charities) that had 1 to 500 employees, and were in business in 2020 and/or 2021 that either:

Employers with more than 500 full-time employees can apply the ERC towards qualified wages paid to employees who were not working during a quarter because the business suspended operations or had a significant decline in gross receipts.

1) Had a Full or Partial Suspension of Operations (FPSO). Had operations that were impacted due to COVID-19 resulting in limitations of commerce travel or group meetings (for commercial, social, religious, or other purposes), AND/OR

2) Had Revenue Decline as a Result of COVID. Experience a significant decline in sales during any calendar from Q1 2020 through Q3 2021, AND/OR

3) Recovery Startup Program.  Companies founded after February 15th, 2020 are called “Recovery Startup Businesses’’ in the context of employee retention tax credits.

We have found, about 95% of the clients that we have worked through OUR PROCESS qualify for ERC under one or a combination of the above programs.