What is the W2 employee count at your company? If so, the federal government may provide financial assistance to your company through the Employee Retention Credit (ERC), often known as the Employee Retention Tax Credit.
Companies can apply for the following:
- Government grants and loans.
- An individual W-2 worker can receive up to $26,000.
- This is NOT a loan. Thus there is no obligation to repay it.
- You can use the money for whatever you like to advance your company’s goals.
What exactly is the ERC?
The COVID epidemic was, without a doubt, a dark period in human history. The worldwide economic impact of the pandemic was devastating. Forcing the closure of enterprises in the United States, which severely hampered their financial stability and their capacity to continue paying wages, led to the loss of millions of jobs.
Congress acted quickly to help small firms stay viable and continue operating as best they could without laying off employees, preventing more economic damage.
The ERC was supported by the CARES Act. It was a $2.2 trillion economic plan that Trump signed into law on March 27, 2020. The measure was drafted in reaction to the potential economic consequences of the 2020 COVID pandemic for businesses. Vice President Joe Biden renamed the original measure the American Recovery and Reinvestment Act (amended to allow companies to have access to both PPP & ERC funds).
Organizations that have suffered losses as a result of the epidemic can apply for funding through this program (Covid). Businesses that meet the requirements set forth in the bill can apply to receive their proportionate share of federal funding. This initiative has a budget of $300 billion, and it will be available through 2025.
- If a company has not yet filed a claim for ERC in the past, it can still do so in the future.
- There is no restriction on how the money may be spent. Therefore it can be used for anything.
- To clarify, this is not a loan.
How to File for a Business Tax Refund
As of the second quarter of 2020, eligible firms will be required to include quarterly reporting of total qualified salaries and related health insurance expenditures on employment tax returns in order to claim the new Employee Retention Credit.
No one has time for the stress that comes with trying to make sense of tax code jargon and regulations. Most accountants are clueless when it comes to filling up and submitting an ERC application.
The good news is that it is simple to ascertain whether or not you qualify for the ERC, file for it, and receive a portion of the funds that so many other firms have already received.
Start the Approval Process for Your Company Today
Don’t make the same mistakes that cause many other companies to miss out on funding they were entitled. Over 96% of the businesses the ERC Specialists represent are ultimately approved and receive funding thanks to the specialists’ expertise in small business accounting and familiarity with the ERC.