Businesses receiving PPP loans were previously disqualified from qualifying for ERC, but with this new relief package qualifying companies can apply for both programs simultaneously. ERC programs don’t incur upfront costs or require extensive paperwork, yet businesses should consult with a tax professional to make sure all their bases are covered. PPP is a forgivable … Read more
The ERC is a fully refundable payroll tax credit without repayment requirements set out by the IRS. To be eligible, firms must meet various criteria established by them. To determine their eligibility, businesses should consult a financial professional and accountant. Furthermore, wages earned under preexisting plans such as vacation pay or sick pay are not … Read more
ERC can impact taxes differently depending on a business’s individual situation, so hiring an experienced tax professional to determine eligibility and prepare necessary forms is essential to getting it right the first time around. Making early preparations also allows time to file amended returns with the IRS and claim any refunds they might offer. To … Read more
If your business experienced significant disruption or revenue losses from COVID-19 pandemic, the Economic Recovery Credit may apply. New rules changes make claiming this credit easier for many businesses. Businesses receiving PPP loans were initially ineligible for ERC relief; however, subsequent COVID-19 legislation removed this limitation. Eligible Businesses Businesses operating during the COVID-19 pandemic must … Read more
The Employee Retention Credit (ERC), first introduced by Congress in 2020, is an invaluable payroll tax credit with significant potential tax benefits – yet is also vulnerable to fraud and scams. To safeguard your business, it’s crucial that you understand the ERC audit process. An ERC audit resembles any IRS audit in that its auditor … Read more
The Employee Retention Credit (ERC) is a refundable tax credit designed to encourage businesses to retain employees during the COVID-19 pandemic, covering up to $26,000 per employee for 2020 and three quarters of 2021. Unfortunately, due to an overwhelming volume of claims and how the IRS processes retroactive filings, wait times have become longer than … Read more
The Consolidated Appropriations Act passed in December 2021 included changes to the Employee Tax Credit that may impact how you claim it. This credit provides reimbursement of employer tax credits in form of employer tax credits. To be eligible, a substantial drop in gross receipts must have taken place, which you can compare against the … Read more
The Employee Retention Credit (ERC) is a refundable payroll tax rebate. Unlike other credits, however, this one doesn’t reduce income taxes but rather provides a dollar-for-dollar reduction of payroll tax expenses. Businesses should understand how to report and calculate ERC in order to avoid having to amend multiple tax returns and pay additional fees. If … Read more
As the ERC process unfolds, it is vitally important that you consult a tax expert who understands both its limitations and benefits in order to avoid costly errors and ensure your business receives its appropriate refund. The ERC is a refundable tax credit calculated according to qualifying wages paid during eligible employer status and can … Read more
If you’re filing with the ERC, we strongly recommend consulting a tax professional who specializes in this area. They’ll help guide you through the forms process while also making sure your paperwork is accurate. Under government orders that restrict commerce or travel or group meetings, your business should have experienced either full or partial closure. … Read more