Still Time to Get ERC Tax Credit
But act soon, massive relief program ends when funds gone
Changes in federal tax laws give small businesses tax credits up to $26,000 per W2 employee, but they must apply quickly before funding dries up.
The money comes after legislative adjustments to the CARES Act’s Employee Retention Credit (ERC). The credit aims to help small businesses negatively affected by the COVID 19 pandemic. Recent legislative changes adjusted timing and removed some restrictions to claim funding – making it easier for small businesses to receive money from the $400 billion program.
The credit is based on income taxes, so businesses can receive credit even if they paid no income taxes in 2020 or 2021. Businesses may receive credits even if they received Payroll Protection Program funding in the $1.9 trillion COVID-19 relief package.
Realtor Built System To Help
Josh Zieglowski, a residential and commercial real estate broker, co-founded ERC Specialists to help small businesses access funding without having to endure the complicated process to qualify. His service helps business owners discover how much money they can receive from the program and also file forms to help them get IRS tax credits.
The credit is an attempt to reward businesses that stayed open and kept employees on the payroll when political demands shut down businesses and kept people home.
Confusion has reigned over the ERC because of how Congress has handled timelines, expirations, and definitions. Eligibility requirements changed over time as did periods of eligibility, eventually extending the credit.
The ERC is a tax benefit not a Small Business Administration benefit, so the money businesses receive under the program is a tax refund. It’s a credit payment back to businesses, not a deduction, not a loan, and not a grant.
ERC unfamiliar to many CPAs
Zieglowski said many CPAs are unfamiliar with how the credit works and said many accounting professionals refer their clients to him to get the ERC credits because of unfamiliarity and the time it takes to process forms. For many CPAs, when the program first came out many businesses didn’t qualify for the credit, so many don’t think clients qualify for the funding.
Zieglowski said ERC money is fully forgiven when you get it, but once the funding is gone so is the credit.
“There’s no need to be the Guinea pig for CPAs by waiting until they learn what to do and possibly miss the opportunity,” Zieglowski said. “We average 10% to 20% more funding than CPAs unfamiliar with the program. Our team strictly focuses on ERC allowing us to be experts and provide more funding for your business.”
The credit is based on several pandemic factors, ranging from full or partial suspension of business operations, gross receipts reductions, or supply chain disruptions. Supply-chain disruptions can be defined to specific businesses and industries. For example, companies that earned sales by attending trade shows but couldn’t attend them might have a supply chain disruption. ERC Specialties advisers can help wade through the fine distinctions.
ERC Specialties has an easy-to-use platform that allows businesses to initially determine qualification, upload required documents, such as past tax forms, and answer a few questions to determine qualification.
The information is analyzed by company accountants to determine eligibility and the total amount a business would receive in tax credits. The company then reports back to the business and the businessowner then decides whether to file for the credits. Zieglowski’s company would file the forms to begin the credit process, if you desire.
You complete a qualification form and get a free analysis whether your business qualifies. Then you gather payroll information and 941 quarterly income tax forms, which ERC Specialties uses to calculate your credit.
Zieglowski said the initial process takes only a few minutes, then uploading documents depends on how quickly the documents can be produced, and then a couple of weeks is required to determine the exact credit amount. Once filed, the IRS takes six to eight months to pay the credit.
We Got a Credit
I have applied for this credit, and the process that ERC Specialties created is quick, easy, and accurate. It will be a great help in recovering from the trauma that erupted out of the pandemic and will help our business going forward. It was easy paying the 15% fee because I did none of the work to prepare and file the credit documents.
Because it’s a tax credit, there are no strings on how the money is spent. I would highly recommend that you explore how this might help you and your business.
You can find out if you qualify by clicking here.