Many business do not know about Employee Retention Credit Funding that is available from the Government to help with the Covid 19 situation. We assist small businesses in filing for ERC refunds nationwide with no up front cost. With all the paperwork involved your accountant may not be qualified and/or have the time to get the most money for your business. Most businesses with 500 employees or less qualify. Even if you received PPP Government money you still may qualify. Let our trained specialists at ERTC Express
help you get the money you deserve. There is a limited amount of time to receive ERC funding. Fill out the preliminary application. If you need help please contact me: support@incomebusinessexpert.com. Apply now before they are gone. Go here for more information and to apply.
- UP TO $26,000 PER EMPLOYEE
- AVAILABLE FOR 2020 & Q1 – Q3 2021
- QUALIFY WITH DECREASED REVENUE OR COVID EVENT
- NO LIMIT ON FUNDING (ERC IS NOT A LOAN)
- ERC IS A REFUNDABLE TAX CREDIT
Evolution of the ERC Tax Credit
Let’s take a look at the evolution of the ERC Tax Credit
Confused about the Employee Retention Credit (ERC)?
You’re not alone
March 2020
December 2020
Evolution of the ERC Tax Credit
The ERC is passed under the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act), part of the government relief program,
to reward business owners for retaining employees throughout
the COVID-19 pandemic. Business owners who have been impacted
by COVID-19 can claim this refundable tax credit for each W-2
employee retained from March 12, 2020 through December 31,
2020.
At this time, business owners who accepted Paycheck Protection
Program funds were not eligible.
The Taxpayer Certainty and Disaster Tax Relief Act of 2020 amended
and extended the Employee Retention Credit under the CARES
Act, including modifying and extending the Employee Retention
Credit (ERC) for six months through June 30, 2021.
As a result of the new legislation, eligible employers can now
claim a refundable tax credit against the employer share of Social
Security tax equal to 70 percent of the qualified wages they
pay to employees after December 31, 2020, through June 30, 2021.
The IRS has made a series of changes to ERC since its
incep-tion and the complexity of those changes combined
with lit-tle guidance from the agency itself has got small
businesses across the country scratching their heads.
Do you qualify? What is the process? What documents do you
need? Help! You may be feeling all of that and more. At
ERC Nationwide , we’re here to help you navigate the CARES
Act ERC process and make it easy to claim the tax credits you
deserve. Our team of dedicated tax experts are the key to
enabling you to get the funding you need quickly.
March – April 2021
The IRS issues several notices during these two months that are
worth looking at as they change and clarify previous notices and
guidance. These notices are referred to as Notice 2021-20, Notice
2021-23 and Notice 2021-24.
Probably most importantly for business owners, Notice 2021-20
provides new guidance that allows employers who received a PPP
loan to be eligible for the ERC tax credit retroactively to March 2020.
The notice also provides new requirements to substantiate
employer claims.
Notice 2021-23 provides guidance on how to appropriately document
the necessary decline in gross receipts as well as other
changes, which include an expansion of eligible employers, nonprofits
and colleges/universities as well as the definition of qualified
wages.
In April, Notice 2021-24 extends the penalty relief previously indicated
if a failure to deposit employment taxes resulted from a
reasonable anticipation of ERC funding.
The America Rescue Plan (ARP) expands and extends the ERC
through Dec. 31, 2021. It also allows for some severely affected
businesses to claim credit for a greater share of employee wages.
Additionally, ARP expands the credit to include startups and new
businesses formed after Feb. 15, 2020, as long as their revenue is
below $1 million.
As you can see, it is no walk in the park just to understand the many ERC changes that have occurred since its
inception, let alone apply for benefits. Need a friend in the tax business who can decipher it all? Contact ERC
Nationwide today and get the tax credits you deserve!
ercnationwide.com
January 2021
The IRS issued guidance indicating employers are eligible for ERC
if they operate a business during January 1 through June 30, 2021,
and:
• Experience either a full or partial suspension of the operations
of their business during this period because of governmental
orders due to COVID-19 or;
• Experience a decline in gross receipts in a calendar quarter
in 2021 where the gross receipts are less than 80 percent of
the gross receipts in the same calendar quarter in 2019. In
addition, to be eligible based on a decline in gross receipts
in 2020, the gross receipts are required to be less than 50
percent of the previous year’s quarter.
The definition of qualified wages was also changed to provide for
the following:
• Employers who averaged more than 500 full-time employees
in 2019 – qualified wages are defined as wages paid to employees
that are not providing services because operations
were fully or partially suspended or due to the decline in
gross receipts.
• Employers that averaged 500 or fewer full-time employees
in 2019 – qualified wages are defined as wages paid to all
employees during a period that operations were fully or partially
suspended or during the quarter that the employer had
a decline in gross receipts regardless of whether the employees
are providing services.
November 2021
The Infrastructure Investment and Jobs Act, signed into law Nov.
15, 2021, has ended the availability of the Employee Retention
Credit (ERC) for the entire fourth quarter of 2021 for most employers.
“Recovery startup businesses” – businesses that began
operations after Feb. 15, 2020, and for which average annual gross
receipts do not exceed $1 million for the three-taxable-year period
immediately preceding the calendar quarter for which the
credit is determined – can continue to claim ERCs for the fourth
quarter (limited to $50,000 for the entire quarter).
Value Proposition:
Why do I have to pay you 15 percent?
Your ERC Nationwides credit claim process includes:
Value Proposition
The services ERC Nationwide provides are not simply filling out
forms on your behalf. The ERC is highly complex, and
it’s beyond the scope of knowledge for
the average CPAs and tax professionals. That’s why our
team is comprised of legal and tax experts with decades
of experience.
• Complete guidance on the claim process
and documentation
• Specific payroll, tax, and legal experience
with thousands of ERC cases enables us
to under-stand and interpret the details
of your claim
• Fast and smooth end-to-end process, from
eligibility to claiming and receiving refunds
My accountant can do this for less, why should I choose you?
Find out if you qualify at
ercnationwide.com
Our team has the expertise and maximize the credit while
staying safely within IRS guidelines. It’s a delicate balancing
act that calls for professionals with decades of experience
dealing with the IRS. Our re-sults speak for themselves:
ERC Nationwide clients receive 10-20% more funding
than people who work with a CPA not familiar with the
program.
The ERC Nationwide program also includes audit assistance:
we stand by our work and will supply all criteria
and assist in responding to the IRS in case of
an audit. We will aid you in substantiating your ERC
eligibility to the IRS if it is questioned in the future. If you
choose to work with a service provider that lacks our
level of focused expertise, you run the risk of be-ing
unable to defend the credit, and the result would be the
IRS returning the credit with a 20% fee. We’ve
successfully submitted thousands of credits, so our team
knows how to craft substantiating evidence to ensure the
credit is approved.
In creating and submitting your claim, we create documentation to ensure
your filing goes smoothly once it reaches the IRS. We address issues such as:
• What are the differences between the 2020 and
2021 programs, and how does it apply to your
business?
• How does the PPP loan factor into the ERC?
• What are aggregation rules for larger, multi-state
employers?
• How do each state and municipality’s executive
orders apply to your business?
• How do part-time, Union, and tipped employees
affect your refund amount?
• Can health insurance expenses be claimed as
part of the credit?
And many other factors that interact to make up your
claim. Our tax and legal experts understand better
than anyone how to access these funds for you. Our
success rate is 100%, and our team has helped over
2,000 businesses receive over $400 million in credits.
ERC FAQ’s
ERC BASICS:
What is ERC?
ERC is a stimulus program designed to help those businesses that were able to retain their employees during the Covid-19 pandemic.
Established by the CARES Act, it is a refundable tax credit – a grant, not a loan – that you can claim for your business. The ERC is available to both small and mid-sized businesses. It is based on qualified wages and healthcare paid to employees.
When does ERC end?
Available for 2020 and 3 quarters of 2021. ERC is claimed on an amended quarterly payroll tax return (Form 941X). Once the IRS processes Form 941X, a check is issued to the taxpayer for the credit amount, plus interest. The statute of limitations for filing amended payroll tax returns is three years from the due date of the return, meaning to apply for the Employee Retention Tax Credit for the 2nd quarter of 2020, the amended return needs to be
submitted by July 2023. So, there’s still time to apply for the credit.
QUALIFICATIONS:
How do I qualify?
There are two ways to qualify;
FULL OR PARTIAL SUSPENSION OF BUSINESS OPERATIONS A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel, or restrictions of group meetings.
GROSS RECEIPTS REDUCTION Gross receipt reduction criteria are different for 2020 and 2021 but are measured against the current quarter as compared to 2019 pre-COVID amounts.
No revenue decline, do I still qualify?
There are two ways to qualify; EITHER a change in your operations OR a revenue decline. You do not need a revenue decline to qualify, in fact many businesses had a revenue increase and still qualified.
I took PPP, do I still qualify?
Under section 206(c) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, an employer that is eligible for the employee retention credit (ERC) can claim the ERC even if the employer has received a Small Business Interruption Loan under the Paycheck Protection Program (PPP).
What qualifies as operational changes?
Here are some impacts to consider that qualify your business for the Employee Retention Credit:
Change in business hours
Partial or full suspension of your operations
Shutdowns of your supply chain or vendors
Reduction in services offered
Reduction in workforce or employee workloads
A disruption in your business (division or department closures)
Inability to visit a client’s job site
Suppliers were unable to make deliveries of critical goods or materials
Additional spacing requirements for employees and customers due to social distancing
Change in job roles/functions
Tasks or work that couldn’t be done from home or while transitioning to remote work conditions
Lack of Travel
Lack of Group Meetings
TAXES:
Is refund considered taxable income?
The refund is a deduction in the payroll expense for the period that the credit is for. The interest that the IRS pays on the credit is considered taxable income in the period that the payment is received.
Is the commission paid to ERC a tax deductible expense? Yes, for example if a company’s ERC refund was $100 and ERCN commission was $20 then the company would lose taxable expense deductions for the net $80 and the net effect would be an increase to its taxable income.
Is it Taxable?
Yes, it’s a professional fees expense.
Will I get audited?
As with any fillings that are done with the IRS there is always a chance that you can get audited, however with the volume that the IRS is processing and their short staff levels it is highly unlikely, the audit rate for employment related tax returns for the last year that the data was available for was under 3 per 10,000 returns. In the unlikely event that you do get audited, while we can’t represent you we will assist by providing all of the supporting documentation to back up the work that we did.
How is PPP subtracted or accounted for?
We can’t use wages covered by PPP loans and apply them to ERC. There is a “no double-dipping” rule governing the interplay of an employer’s forgiven PPP loan and its eligibility for ERC. Apply Now.
