*Per the IRS “On September 14, 2023, the IRS announced an immediate moratorium on processing of new claims through at least December 31, 2023. This will allow the IRS time to add more safeguards to prevent future abuse and protect businesses from predatory tactics. ” For the moment all ERC applications have been put on hold unitl further notice.
ERC ~ EMPLOYEE RETENTION CREDIT
Employee retention credit is a tax credit available to employers under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The credit is available to employers who have experienced a significant decline in gross receipts due to the coronavirus pandemic. The credit is equal to 50% of qualified wages paid to employees up to $10,000 per employee. The credit is available for wages paid between March 13, 2020 and December 31, 2020. Employers must reduce their deduction of wages by the amount of the credit when computing their employment tax liability. The credit is not taxable, and it can be used to offset the employer’s share of Social Security taxes.
BENEFITS OF THE ERC
The Employee Retention Credit (ERC) is a tax refund of up to $26,000 per employee that businesses may be eligible for if they retained employees during the pandemic. Benefits of applying for the ERC include a refund of up to $26,000 per employee and the potential to reduce the amount of taxes owed.
Do I qualify for the ERC if I recieved a PPP loan?
It depends on a variety of factors, including whether you have experienced a significant decline in gross receipts or the type of PPP Loan you received. Generally speaking, employers who received a PPP Loan are eligible for the Employer Retention Credit, however, you should consult with one of our tax professionals to determine if you are eligible.
The Employee Retention Credit Application requires applicants to meet certain eligibility requirements in order to be approved. These requirements include being an eligible employer, having experienced a full or partial suspension of operations due to a governmental order related to COVID-19, and having experienced a significant decline in gross receipts. Additionally, employers must have fewer than 500 full-time employees in order to be eligible.
The ERC Application has three eligibility requirements:
1) The employer must have been in operation on March 12, 2020;
2) The employer must have experienced a full or partial suspension of operations due to a governmental order related to COVID-19;
3) The employer must have experienced a significant decline in gross receipts.
If you believe you meet any of the three criteria for qualification, or if you are uncertain, book a free consultation with us today! Our team of experts will be glad to help guide you through the complicated process.
ERC – Employee Retention Credit Help on Seattle’s Eastside
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