As a small business owner, you may be eligible for the Employee Retention Credit (ERTC) as part of the CARES Act. This credit can give you up to $26,000 per employee, but understanding the eligibility criteria can be tricky.
In this article, we’ll break down the eligibility criteria for ERTC, how to calculate it, and how to maximize your benefits. We’ll also explain how a done-for-you service can help make sure you get the most out of this credit.
So, keep reading to learn more about the ERTC and how you can take advantage of it.
Overview
Gain insight into the Employee Retention Credit and how it could help you get your business back on track!
The Employee Retention Credit (ERTC) was introduced in 2020 as part of the CARES Act to help businesses keep employees on payroll during the COVID-19 pandemic. To be eligible, you must meet two sets of criteria, including a thorough examination of gross receipts per quarter, and have lost more than 50% of their gross receipts in any quarter while paying wages, including healthcare benefits.
Small business owners can still claim ERTC for their 2020 or 2021 payroll tax returns within the statute of limitations, and the maximum available ERTC is $7,000 per employee per quarter.
Recovery Startup Businesses are also eligible for ERTC if they meet specific requirements. If a business employed less than 100 people, they had to pay all of them for that time. If a business had more than 100 employees, then only full-time employees count toward this credit. Any employer that received a PPP loan automatically became ineligible for ERTC.
ERTC policy saw multiple revisions in 2021, increasing the eligibility pool and expanding the credit to $7,000 per employee per quarter. Recovery Startup Businesses have the chance to claim all paid wages for all four quarters of 2021. Other amendments allow businesses to elect a prior quarter for the next quarter and increase the employee limit to 500. ERTC can potentially refund small business owners up to $26,000 per employee.
Getting money back during the pandemic requires meeting numerous requirements and performing adequate accounting. A done-for-you service can ensure your ERTC request is not denied and help you reap the maximum benefit. The service keeps track of all complexities and amendments to the ERTC and determines your business’s eligibility.
Quarterly employment tax returns and gross receipts are meticulously reviewed to calculate each employee’s qualified wages and account for all relevant costs. The service ensures you make the maximum claim to help get your business back on track and out of the red.
CARES Act Provisions
You need to be aware of the CARES Act provisions to make sure you get the most out of the credit available to you. The CARES Act was introduced in 2020 to help businesses keep employees on payroll during the pandemic.
To qualify for ERTC, businesses must meet two sets of guidelines. This includes a thorough examination of gross receipts per quarter and a requirement to have lost more than 50% of their gross receipts in any quarter while paying wages. Qualified wages are calculated based on the size of the workforce, with businesses of 100 or less employees needing to pay all of them for the time. The maximum available ERTC is $7,000 per employee per quarter.
The policy saw multiple revisions in 2021, allowing businesses to increase the employee limit to 500, elect a prior quarter for the next quarter, and receive a credit of up to $7,000 per employee per quarter paid until December 2021. Additionally, Recovery Startup Businesses are eligible for ERTC if they meet specific requirements and can claim all paid wages for all four quarters of 2021.
To claim ERTC, you must report the total qualified wages and any relevant health insurance costs on quarterly tax returns. Retroactive filing is possible until the end of 2024, depending on originally filed or paid taxes.
ERTC can be retained instead of depositing it without extra charges or requested as an advanced payment. It can potentially refund small business owners up to $26,000 per employee. Getting money back during the pandemic requires meeting numerous requirements and performing adequate accounting.
Eligibility must be determined before the size of the credit can be calculated. A done-for-you service can ensure your ERTC request is not denied and help you reap the maximum benefit. It keeps track of all complexities and amendments to the ERTC policy and determines your business’s eligibility.
To get started, fill out an intake form. The form requires your name, business name, email, and phone number. You must indicate whether you have any percentage of another business and provide the type of business. You must also indicate whether you operated under a full or partial shutdown order. The form asks how many W-2s were issued in 2020 and 2021.
This service has served over 60,000 businesses and can help you make the maximum claim to get your business back on track and out of the red.
Calculating Eligibility
Figuring out if your business qualifies for ERTC can be a complex process, so make sure you get the most out of the credit available to you by doing it right.
To start, you need to determine your eligibility based on two sets of guidelines, which includes examining your gross receipts per quarter. If you meet the criteria, you can then calculate the number of employees eligible for ERTC and the qualified wages.
Retroactive filing is an option, and you can also elect a prior quarter for the next quarter and increase the employee limit to 500.
To make the most of the credit available to you, consider getting a done-for-you service to help you through the process. They can help you determine your eligibility and calculate the maximum amount of ERTC you can claim. They will also keep track of any amendments to the policy and make sure you get the most out of your ERTC filing.
With their help, you can get your business back on track and out of the red. So don’t hesitate to get the assistance you need to make sure you get the most out of this credit.
Retroactive Filing
With retroactive filing, businesses can get the most out of the ERTC and get their finances back on track. It’s possible to file retroactively until the end of 2024, depending on when taxes were originally filed or paid. This is great news for businesses that may have missed out on claiming ERTC when it was first introduced in 2020.
By filing retroactively, businesses can get back the money they missed out on and use it to help their finances recover. Retroactive filing also makes it easier to identify any potential errors that could have been made in the original filing. This allows businesses to make sure that they are taking full advantage of the ERTC and not missing out on any additional funds that they may be eligible for.
In addition, businesses can also use it to ensure that they are not over-claiming ERTC and running the risk of an audit. Retroactive filing is a great way for businesses to get the most out of the ERTC. It allows them to identify any errors that may have been made in the filing process and ensure that they are getting the maximum amount of ERTC that they are eligible for.
This can be a major help for businesses that may be struggling financially due to the pandemic. With retroactive filing, businesses can get back the money they missed out on and make sure that they are getting the maximum benefit from the ERTC program. This can help get their finances back on track and help them recover from the economic effects of the pandemic.
Maximizing Benefits
Getting the most out of the ERTC program can help businesses get back on their feet and make up for some of the losses suffered during the pandemic. Maximizing benefits requires understanding the guidelines, calculating eligible wages, and properly filing claims.
A done-for-you service can ensure your ERTC request is not denied and help you reap the maximum benefit. The service keeps track of all complexities and amendments to the ERTC and determines your business’s eligibility. Quarterly employment tax returns and gross receipts are meticulously reviewed to calculate each employee’s qualified wages and account for all relevant costs.
The service ensures you make the maximum claim to help get your business back on track and out of the red. To get started, fill out an intake form. The form requires your name, business name, email, and phone number. You must indicate whether you have any percentage of another business and provide the type of business. You must also indicate whether you operated under a full or partial shutdown order. The form asks how many W-2s were issued in 2020 and 2021.
The number of employees eligible for ERTC depends on the size of the workforce and whether they were working during the pandemic. Qualifying businesses can get up to 50% of paid salary, with the maximum credit capped at $5,000 per employee per quarter paid until December 2021. If a business employed less than 100 people, they had to pay all of them for that time. If a business had more than 100 employees, then only full-time employees count toward this credit. Any employer that received a PPP loan automatically became ineligible for ERTC.
Retroactive filing is possible until the end of 2024, depending on originally filed or paid taxes. ERTC policy saw multiple revisions in 2021, increasing the eligibility pool and expanding the credit to $7,000 per employee per quarter. Recovery Startup Businesses have the chance to claim all paid wages for all four quarters of 2021. Other amendments allow businesses to elect a prior quarter for the next quarter and increase the employee limit to 500.
ERTC can potentially refund small business owners up to $26,000 per employee. With the right services and understanding of the guidelines, businesses can maximize their ERTC benefits and get back on track.
Conclusion
You now understand the eligibility criteria for the ERTC, and how a done-for-you service can help you make the most of this great opportunity.
With the right help, businesses of any size can maximize their ERTC benefits and receive up to $26,000 per employee.
So don’t wait any longer. Get the help you need to make the most of the ERTC and get the most out of this unique opportunity.