You’ve probably been inundated with TV ads, Radio ads, Robo Calls, In-person Cold Calls, Facebook Ads, LinkedIn ads, etc. etc. etc.!!!!! telling you that your may be eligible for a tax refund for up to $26K per W-2 Employee.
ERTC (Employee Retention Tax Credit) or ERC (Employee Retention Credit) mean the same thing. Basically it’s a Payroll Tax Refund from the IRS for eligible small- to mid-size businesses which were negatively impacted by COVID-19.
Is ERTC or ERC real?
Yes, it’s very real. An article on this Tax Incentive was featured on the front page of The New York Times May, 27, 2023. As well, IRS.gov has dozens of articles on their Web site about the validity of this.
Let’s see if your business may qualify for the ERTC.
How did the ERTC or ERC come about?
What about PPP?
The U.S. Congress passed a $2.2 trillion stimulus bill, the CARES Act (Coronavirus Aid, Relief, and Economic Security Act), in March 2020 to stimulate the economy due to the economic damage caused by the Coronavirus pandemic.
You’ve most likely heard of the PPP – Paycheck Protection Program, or may even have received PPP money, which is no longer available. Previously, if you got PPP you couldn’t apply for ERTC.
The tax code for ERTC’s eligibility was amended with The American Rescue Plan Act of 2021. Under this Act, Congress made an amendment to the rules of the ERTC, so you can now apply for ERTC even if you already received PPP. The funds you received from PPP will be included in the calculation to see what you may qualify for with the ERTC.
Why hasn’t my CPA told me about this.
Most broad-spectrum CPAs aren’t aware that the ERTC is now available. If they are aware, this is a very complex process, and they may not have the time to learn about the new tax code. We suggest ERTC Experts, who have been doing these amended returns for more than 2 years, while being 100% Compliant
My CPA said I’m not eligible for ERTC because they already filed for my PPP
When the PPP was available, CPAs had a choice of filing for PPP or ERTC. ERTC is very complex and requires ERTC Experts, while the PPP was very easy. And, at that time, if you got PPP you weren’t able to file for ERTC.
Now you can file for ERTC, but the window of opportunity is closing, and processing times are getting longer due to the huge demand from other companies who have already filed.
My CPA said they’ll do the calculation.
This is fine if your CPA is an expert in ERTC. It’s a very complex tax code. Most broad-spectrum CPAs may only qualify you for loss-of-income while expert ERTC CPAs will qualify you for all restrictions the U.S. Government put in place during the pandemic. This includes supply-chain issues, capacity restrictions, PPE requirements, and many more. Our expert CPAs, including former IRS representatives, only work on ERTC, and nothing else, and know the tax code better than anyone else to get the maximum refund, while being 100% compliant.
Is it for W-2 Employees or 1099 Contractors?
The credit is only eligible for W-2 employees, who are not owners or family members.
What documents are required to apply for the ERTC?
Forms W3 and 941, and your payroll journal. You will only need to supply your PPP Forms if you received PPP. The PPP amounts will be included in the calculation to determine the amount of your ERTC
What quarters are eligible? How many W-2 Employees are eligible?
Eligible quarters: # of W-2 Employees Allowed in Qualification:
-Last 3 quarters of 2020 Full Time 5-100 employees, Part Time 2 to unlimited
-First 3 quarters of 2021 Full Time 5-500 employees, Part Time 2 to unlimited
What is the deadline to file for these credits:
April 14, 2024 is the deadline for the 2020 quarters
April 14, 2025 is the deadline for the 2021 quarters
You should file for both 2020 and 2021 by April 14th, 2024 to get all the credit you may qualify for.
If you wait till 2025 to file, you will only get credit for 2021, and forfeit any eligible credits for 2020
It’s a very limited window of opportunity
The time to apply for these funds is now, as many businesses have already filed and are in the queue at the IRS. It’s currently taking more than 20 weeks to receive your refund. And that time will only get longer as time goes on and more and more businesses want to see if they qualify as the ERTC/ERC program becomes more well-known
I’ve heard it’s a pool of Covid money, and it’s running out.
Not true! Unlike PPP funds, which are no longer available, the ERTC credit is a refund of payroll taxes you already paid into the IRS. This is the US Government helping you out financially for the income you lost during Covid by abiding by all restrictions
7/2/23