ERCT consult

Some answers to popular questions :

Do I have to pay tax on my ERC refund?

See the poster below for answers.

The ERC program has been a valuable tool for businesses struggling to retain employees during the pandemic. As the program continues to evolve, businesses should stay up-to-date on eligibility requirements and claim the credit as soon as possible to take advantage of the benefits it offers.

The Employee Retention Credit (ERC) program is a tax credit program introduced in 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses retain their employees during the COVID-19 pandemic. The program was extended and expanded in subsequent legislation, including the Consolidated Appropriations Act, 2021, and the American Rescue Plan Act, 2021.

The ERC is a refundable tax credit that businesses can claim against certain employment taxes, including Social Security and Medicare taxes. The credit is available to businesses that experienced a significant decline in gross receipts or were fully or partially suspended due to COVID-19. The credit amount varies based on the number of employees and the length of time they were retained.

Under the original CARES Act, the ERC was a 50% tax credit on up to $10,000 in qualified wages per employee for the period from March 13, 2020, through December 31, 2020. The Consolidated Appropriations Act, 2021, extended the program through June 30, 2021, and increased the credit to 70% on up to $10,000 in qualified wages per employee per quarter. The American Rescue Plan Act, 2021, extended the program further through December 31, 2021, and increased the credit to 70% on up to $10,000 in qualified wages per employee per quarter, with certain modifications to eligibility requirements.

Check now to see if your business qualify

https://www.erctogether.com/quiz?ref=getit10

ERC Refund Explained:

The Employee Retention Credit (ERC) is a refundable tax credit that was introduced as part of the CARES Act in response to the economic impact of the COVID-19 pandemic. The ERC is designed to encourage businesses to keep employees on their payroll by providing a tax credit for wages paid to employees during the pandemic.

The ERC is a refundable tax credit, which means that if the credit is greater than the amount of taxes owed, the excess will be refunded to the employer. The credit is available to eligible employers who continue to pay employee wages during periods of reduced business operations or full or partial suspension of business operations due to COVID-19.

The refundable nature of the ERC means that eligible employers can receive a refund of the credit in excess of their payroll taxes. This can be a valuable source of cash flow for businesses struggling to stay afloat during the pandemic. The credit is administered through the employer's quarterly payroll tax filings with the IRS.

Why apply for ERC refund?

Financial Relief: Small businesses that have been hit hard by the
COVID-19 pandemic may find that applying for the employee retention
credit refund provides much-needed financial relief. The credit is
refundable, which means that if the amount of the credit is greater
than the business's payroll tax liability, the excess will be refunded
to the business.

Help Retain Employees: As the name suggests, the employee retention
credit is designed to encourage employers to keep employees on their
payroll. By applying for the credit, small businesses can offset some
of the costs of retaining employees, which may help them avoid layoffs
or furloughs.

Tax Savings: The employee retention credit is a tax credit, which
means that it can reduce a small business's tax liability. By applying
for the credit, small businesses may be able to save money on their
tax bill, which can help improve their bottom line.

Improved Cash Flow: Small businesses that apply for the employee
retention credit refund may receive the funds quickly, which can help
improve their cash flow. This can be especially important for small
businesses that are struggling to make ends meet and need access to
cash to pay bills or cover other expenses.

Competitive Advantage: Small businesses that take advantage of the
employee retention credit may have a competitive advantage over other
businesses in their industry that do not.

By retaining employees and
improving their financial position, small businesses may be better
positioned to weather the economic challenges posed by the pandemic
and emerge stronger in the long run.

Click the link to see if you're eligible for a refund.
https://www.erctogether.com/quiz?ref=getit10

Exciting news!

Our business consulting service now has a team of previous IRS employees and qualified advisors on board! This means
that we have an expert understanding of tax laws and regulations, as
well as the experience to help your business navigate any potential
challenges.

Our team is dedicated to providing you with the best possible advice and support to help your business access your ERC refund.

Contact us today to learn more about how we can help your business thrive!