These tools take into account your specific business situation and requirements.
ERC Today is a full-service provider of the ERTC program. They assess eligibility, complete a detailed analysis, offer guidance on claiming and documentation, provide specific program expertise that your regular CPA or payroll processor might not have and execute a fast and smooth end-to-end process.
How does the ERTC Work?
The ERTC is a tax credit outlined in the Coronavirus Aid, Relief, and Economic Security Act developed to help businesses keep employees. Eligible business owners can file for this credit to receive a reimbursement up to one year after the end of the pandemic.
To qualify for the ERTC, companies must show that they experienced a significant decline in gross receipts during a quarter of the year. To do this, businesses must compare the total amount of revenue in a quarter to the same quarter in the previous year.
This may sound like a simple process, but there are several elements involved in calculating the ERTC that can be complicated or even impossible to get right if you donât know what youâre doing. Thatâs why it is best to use a service that has proven experience helping clients claim this credit, with effortless data gathering (including a portal for uploading 941 returns, PPP loan documents, and raw payroll data), easy credit calculation, and the lowest upfront costs in the industry.
Online ERTC Tax Credit (ERC)
Using an online ERC calculator or working with an ERC professional can help you determine your eligibility and what amount you may receive. Be wary of unsolicited ads, calls, emails or texts that claim to be able to determine your ERC eligibility in minutes.
Typically, businesses report qualified wages for the ERTC on a quarterly basis through Form 941, Employer’s Quarterly Federal Tax Return. These returns also include Social Security and Medicare taxes withheld from employees’ paychecks as well as the employer portion of those taxes.
To qualify for the credit, you must have had to shut down your business or show a significant decline in gross receipts during a period of partial or total shutdowns in 2020 and 2021.Under previous law, companies that ERTC Tax Credit Team took a PPP loan couldn’t claim the ERTC; however, changes made as part of the Consolidated Appropriations Act in December 2020 have rectified this and allowed smaller businesses to take advantage of both programs.
Eligibility
If youâre a small business that suffered a significant decline in gross receipts during a COVID-19-related shutdown, you may qualify for the ERC. Eligibility requirements are based on the law in effect when your business paid qualified wages, and other factors like whether you took a Paycheck Protection Program (PPP) loan impact the credit you can claim.
ERC eligibility is complex, and businesses must carefully review the laws that impact them. In addition, itâs essential to have the proper records in place to determine if a business qualifies.
Beware of unsolicited emails, ads and calls from companies that promise to determine ERC eligibility within minutes or offer large upfront fees for the service. These companies are likely scams and you should avoid them. Laurie Savage is a senior compliance professional leading robust legislative research efforts analyzing intricate policy, including the Affordable Care Act, paid leave and tax reform, as well as legislation responding to the COVID-19 pandemic.
Calculation
The ERTC is a refundable payroll tax credit that can be worth around 70% of qualified wages. Itâs designed to help businesses and organizations that were forced to shut down during the COVID-19 pandemic due to a government mandate or suffered a significant decline in gross receipts. This ERTC Calculator can help you estimate your eligibility and potential refund amount.
To qualify for the ERTC, your business must have suffered a substantial drop in gross receipts compared to the same quarter of the previous year. This is usually
measured
in terms of an elevator graph or similar figure that shows the dramatic decline in business.
Accurate ERTC calculations can reduce audit risk, improve financial reporting and increase business operationsâ sustainability. These benefits can be especially important for nonprofits that rely on the ERTC program to provide much-needed relief
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