Focused solely on maximizing your refundable claims for the Employee Retention Tax Credits with a simple process that requires less than 15 Minutes of your time.
Maximizing Your Claims For Keeping Americans Employed
The government has authorized unprecedented stimulus, and yet billions of dollars will go unclaimed.
We only specialize in maximizing Employee Retention Tax Credits for small business owners. You won’t find us preparing income taxes, compiling financial statements, or providing attestation services of any kind.
When you engage us, rest assured that you’ve hired the best CPA Firm to lock in this one-time opportunity for a large refund check from the IRS.
These are just some of the businesses we’ve helped in the past 30 days.
Business Consulting Firm in Newport Beach, California, 19 W-2 Employees;
Presentation Design Agency in Nashville, TN, 19 W-2 Employees;
Restaurant Ownership Group in Florida, 224 W-2 Employees;
Restaurant in Houston, Texas, 80 W-2 Employees;
Montessori School in Addison, Illinois, 35 W-2 Employees;
What exactly is the Employee Retention Credit (ERTC)
In light of the significant impact the covet pandemic has had for many businesses large and small the federal government, IRS, has enacted various programs to help businesses recover have you heard of the employee retention credit program, ERC. The ERC is a grant, not a loan, which you can claim for your business based on qualified wages and benefits paid to your employees. How much money can you give back? You can claim ERC equal to 70% of qualified wages for 2021 and 50% for 2020. The maximum amount per employee is 7,000 per quarter in 2021 and 5,000 for the year total in 2020.
How to determine if your business is eligible?
Let’s say your company has 100 employees and you took a ppp loan. We would be able to get you a total refund of approximately one million dollars. How do you know if your business is eligible? Your business has to meet the following criteria: have been in existence since February 15 2020 and have less than 500 employees for 2021 and less than 100 employees for 2020. If not, you may qualify for some benefits as a large employer. In addition, either one of the following should apply to your business: fully or partially suspended operations, or reduced business hours, due to government orders, experienced a significant decline in gross receipts due to the pandemic for 2021, more than a 20 percent decline versus the same quarter in 2019 for 2020, more than a 50% declined versus the same quarter in 2019. The ERC has strict eligibility requirements, involves complex and technical details, and has undergone various changes since 2020.
This credit is favourable, but complicated, and we at ERTC Wizard are here to help figure it all out for you. Here’s what we will provide: thorough evaluation regarding your eligibility, comprehensive analysis of your claim, guidance on the claiming process and documentation, specific program expertise that a regular CPA or payroll processor might not be well versed in, fast and smooth end-to-end process from eligibility to claiming and receiving funds, dedicated specialists that will interpret highly complex program rules and will be available to answer your questions, including how does the PPP loan factor into the ERC (also referred to as ERTC, Employee Retention Tax Credit), what are the differences between the 2020 and 2021 programs and how does it apply to your business.
For larger multi-state employers, what are aggregation rules and how do I interpret multiple states executive orders, how do part-time union and tipped employees affect the amount of my refunds and more. The great news is our interests are fully aligned. We only receive a fee if you recover your money. We have worked with many clients and have successfully brought large refunds. We will make sure you’re taking the right next steps and maximizing your claim for your business. If you’re interested in finding out more or have any questions, complete the form above and one of our team will get back to you shortly. Employers will love their retention credit.
The Coronavirus Aid, Relief, and Economic Security Act (also known as the CARES Act) was signed into law on March 27, 2020. It included two programs to assist businesses with keeping workers employed: the Payroll Protection Program (PPP) administered by the Small Business Adminstration and Employee Retention Tax Credit (ERTC) administered by the Internal Revenue Service.
PPP funds are distributed based on 2.5 months of payroll and a minimum of 80% of the funds must be used on payroll to be eligible for forgiveness. Additionally, PPP funds are not taxable as revenue and you may still take deductions for the payroll covered by PPP.
ERTC tax credits, however, are credits (or refunds) for a percentage of payroll in each quarter that you qualify. There are specific rules for determining eligibility by quarter, and limiting the dollars that can be claimed for each employee.
Initially with the CARES Act, employers could choose to apply for PPP or claim ERTC credits, but not both.
PPP was more beneficial than ERTC for most businesses (for reasons we won’t go into here) and so most businesses with under 500 employees received forgivable PPP Loans.
On March 11, 2021, The American Rescue Plan Act of 2021 was signed into law and included many modifications and expansions to existing elements of previous stimulus programs.
Noteworthy modifications for business owners included:
Businesses who applied for and received PPP funds could now also claim ERTC credits.
ERTC credits could be retroactively claimed for businesses that qualified in 2020.
ERTC credits were extended through 9/30/21 with lower qualification requirements.
The per-employee cap on qualifying wages increased from $10,000 for all of 2020 to $10,000 per quarter for the first 3 quarters of 2021.
The refundable credit amount increased from 50% of qualifying wages in 2020 to 70% in 2021.
So the short answer is “Yes” . . . you can claim ERTC even if you received PPP funds.
Unlike the Payroll Protection Program (administered by the Small Business Administration), there is actually no “application process” for the Employee Retention Tax Credits.
You simply claim the ERTC tax credit like you would any other tax credit – by asserting to the IRS that you can legally claim the credit.
When you claim a child tax credit, you do so by asserting this fact on your Form 1040 Personal Income Tax Return.
The difference is that when you claim an ERTC tax credit, you do so on your Form 941 Employer Quarterly Tax Filing.
For prior quarters, you must file an amended form (the Form 941-X) to reduce your current quarter’s tax contribution and request a refund of excess credits (which is highly likely).
Another perk of ERTC, is that since you can often estimate these credits in advance of distributing cash for payroll, you can file a Form 7200 to receive a cash advance to avoid waiting until the end of the quarter to apply for the refund.
Even though you may feel like revenue is back to normal, there are some items you want to consider before passing on this ERTC assessment.
First, even if revenues have returned to “normal” in 2021, you may have qualified in 2020 and you can retroactively claim those credits. That eligibility criteria in 2020 was based on revenue declines from 2019, or if your business was partially or fully closed due to governmental mandate.
Second, while your revenue may have returned to “normal” in Q1 2021, remember that we are comparing your Q1 2021 to Q1 2019. If 2019 was a year of growth for your business, then your revenue levels 2 years ago may have been much less than Q1 2020.
And lastly, if your revenues were down in Q4 2020 by just 20% compared to Q4 2019, then you may also be eligible for Q1 2021. There is a safe harbor provision that few advisors are talking about, and it means that many businesses are qualifying for $7,000 per employee in Q1 2021.
I know, it seems too good to be true, but the government wants to incentivize and reward you for keeping US residents employed and money flowing through our economy as we rebuild bigger and stronger than before.
You are most likely referring to a provision of the CARES Act that allowed employers to defer the deposit and payment of the employer’s share of Social Security taxes. Those deferrals must then be repaid – with at least 50% of the balance due by 12/31/21 and the remaining balance due by 12/31/22.
ERTC credits are NOT a deferral. They are dollar-for-dollar credits against wages you’ve paid. Not taxes you’ve paid, but actual wages.
These credits can offset future tax contributions or you can receive a refund check – it’s your choice.
And you will NOT have to re-pay these funds (unless, of course, you don’t provide adequate documentation in the course of an audit).
Your banker, CPA, or Financial Advisor was probably very helpful when it came to getting your PPP funds because they were effectively signing you to an SBA-guaranteed loan. The SBA paid the bank administrative fees based on the PPP loans they made, and so they were incentivized to educate you about the program and get all your paperwork in order.
Compared to the ERTC, the PPP program was also a rather simple calculation. 2 ½ times your average monthly payroll including health insurance and state unemployment taxes.
From the conversations we’ve had with bankers, they have no interest in involving themselves in your employment tax compliance. For them it is a liability and beyond their scope of services.
Your Payroll Service does an excellent job of executing the fundamentals of paying your employees, paying your employment taxes and filing your quarterly reports.
But computing your ERTC credits requires visibility into your P&L and PPP forgiveness applications. Not only that, but the complex requirements around eligibility and allocating ERTC credits at the employee-level while accounting for annual and quarterly qualifying wage gaps and . . . well, you can probably tell why Payroll Services are not offering to do all of this for you.
The Payroll Services that we’ve worked with so far are happy to provide the payroll registers that we need to perform the allocations. And they are happy to file the Amended Form 941-X with the IRS on our client’s behalf.
But that’s the extent of it.
In fact, most wise Payroll Services are asking clients to sign an indemnification waiver before submitting a Form 941-X because the Payroll Service can take no responsibility for the accuracy of the ERTC credits you are claiming.
For them to involve themselves in the intricacies of this calculation, it is a liability and beyond their scope of services.
Whether your tax accountant is a CPA or EA, he or she most likely only prepares your Federal and State Income Tax Returns. However, ERTC credits are claimed against Employment Taxes on Form 941, and cash advanced through Form 7200.
The complexity of the ERTC program is a beast unto itself and every tax accountant we’ve talked to has said they focus on staying up-to-date on the ever-evolving income tax code, and they can’t now become experts in the ERTC program as well.
If your tax accountant is comfortable determining your eligibility by quarter and year, computing your credits, and preparing contemporaneous documentation to support an IRS audit, then you should certainly let them handle all of this.
If you want a second set of eyes on this, we’re happy to take a look.
Your Bookkeeper should certainly have access to all the information that is needed for an accurate calculation of your legal ERTC claim. They will have your financial reports, payroll registers, and PPP loan forgiveness documents.
The Million Dollar Question is . . . Do They Have The Time?
So far, we have not found a bookkeeper who is able to take all this on, while handling the day-to-day of bookkeeping. If yours can, then take them up on their offer. We’re happy to take a second look.