ERTC Funds Recovery
Employee Retention Tax Credit (ERTC)
If you retained employees through COVID shutdowns, your business could be eligible for a tax refund of up to $26k per employee. There are time restrictions to file for your business. Take advantage of the employee retention tax credit while it’s still available.
No Cost or Obligation To Check Eligibility
Our Employee Retention Tax Credit (ERTC) team can help you get the maximum tax credit your business deserves.
Let us help you through the ERTC program complexities so you can obtain your credits and maximize your refund as quickly and easily as possible.
FREQUENTLY ASKED QUESTIONS
WHAT IS THE EMPLOYEE RETENTION TAX CREDIT (ERTC)?
In the CARES Act of 2020, Congress developed the ERTC to reward and help businesses to keep their employees on the payroll during the COVID-related shutdowns. The ERTC was meant to incentivize employers by offering a quarterly credit for each qualified employee.
HOW DO I QUALIFY FOR THE ERTC?
The ERTC is a federal stimulus program made for companies that remained open during the pandemic and retained W2 employees. Your company may qualify for the ERTC by showing either:
- A full or partial suspension of operation during any calendar quarter because of governmental orders limiting commerce, travel or group meetings due to COVID-19
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In Q4 of 2020, you experienced a decline in gross receipts of 50% from the corresponding quarter in 2019 or less than 80% of gross receipts in the preceding quarter.
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All 3 quarters in 2021 are eligible to use the 80% gross receipts test versus the preceding quarter or the corresponding quarter from previous year instead to 50% drop in gross receipts, refund up to 70% of $10,000 per employee.
HOW MUCH IS THE ERTC WORTH TO MY BUSINESS?
The ERTC can be worth up to $26,000 per W2 employee in your business. ERTC funds are NOT a loan and do not have to be repaid. There are no stipulations on how a business may use ERTC funds once received. Though labeled a “tax credit” the ERTC is distributed to the business as a direct payment from the IRS.
IS THE ERTC A TAX DEDUCTION?
The ERTC is a refundable credit, not a tax deduction. Once the dollar amount is calculated, most companies that qualify will receive payment as a check.
ARE MASK MANDATES CONSIDERED A SUSPENSION IN BUSINESS?
Mask mandates by the CDC do not commonly qualify as a suspension or limiting activity in business. To qualify as partially suspended, your business operations must have been limited due to a federal, state, or local order, proclamation, or decree.
WHAT TYPES OF BUSINESSES QUALIFY FOR EMPLOYEE RETENTION TAX CREDIT?
Employers across a wide range of industries, including education, government contractors, healthcare, hospitality, retail, restaurants, industrial, not-for-profit, professional services, real estate, construction, and technology, plus more may be eligible for ERTC.
WHAT KIND OF THINGS WOULD QUALIFY MY BUSINESS FOR THE EMPLOYEE RETENTION TAX CREDIT?
- Supply chain disruptions
- Time taken away from shifts to clean/sanitize
- Time to wear PPE
- Federal, state, or local mandates required your business to fully or partially shut down
- Limitations on the number of people you could have in a room or building
- Inability to attend normal networking events
- Disruptions to your sales force’s ability to function normally
- Limited capacity to operate
- Inability to work with vendors
- Reduction to the services or goods offered to customers
- Reduction to the hours of operations
- Shifting of hours of operations to increase facility sanitation
- Delayed or canceled projects due to Covid related disruptions
MY BUSINESS MADE MONEY DURING THE PANDEMIC. CAN I STILL QUALIFY?
Yes. Reduction in revenue is only one mechanism of qualification, however there are other nominal impacts that can still lead to qualification. For example, if your business maintains both essential and non-essential business operations, each of which are more than nominal portions of your business operations, your company may be considered to still have a partial suspension of its operations if a governmental order restricts the operations of the non-essential portion of the business, even if the essential portion of the business is unaffected.
GET IN TOUCH TODAY!
We offer free consultations 24/7 and can help assist you in all of your ERTC needs.