Employee Retention Credits

You could qualify for a tax refund of up to $26K per employee!

If your business was impacted by COVID-19 (and most were!), you likely qualify for the Employee Retention Credit. You could receive up to $26,000 per employee, completely tax free.

This is not a loan and does not have to be repaid.

What is the ERC?

Designed to reward businesses that have kept their employees on staff during the Covid-19 pandemic, the Employee Retention Credit was put into place by the federal CARES Act and updated through several following measures. The ERC, or Employee Retention Credit, provides tax credits for employers with qualifying employees.
A Result of the Covid-19 Pandemic
When the Covid-19 pandemic hit in early 2020, many companies saw their business come to an abrupt end. Their customers stopped coming by to shop, restaurants closed their doors, and companies offering various services saw their incoming phone calls and requests for tasks stop in their tracks. As a result, many companies laid off workers, causing the business world to fall into additional turmoil.
Designed to Reward Businesses

In order to keep people employed, the federal government put forth the CARES Act, which included a number of important rewards for companies who stayed open and in business. One provision of this was the Employee Retention Credit. Companies that kept their employees on payroll and working were rewarded with a tax credit.

Do You Qualify?

In order to qualify for the ERC, companies need to prove that their business was negatively impacted by the Covid-19 pandemic. They also have to report wages paid to workers during the government mandated shutdowns that occurred throughout 2020 and 2021. These wages qualify the business for the tax credit.

The initial ERC was only for certain time periods during the heaviest hit months of the pandemic. However, the American Rescue Act of 2021 extended the ERC through the end of the year, so companies could claim it for wages paid through January 1, 2022.

If a business had a reduction in gross receipts by more than 50% in 2020 as compare to 2019 or greater than 20% in 2021 as compared to 2019.

A partial or complete shutdown mandated by the Federal Government.

Time is running out!

Although the ERC was only for certain time periods, if you haven’t yet filed those tax returns, then you may still be eligible. The most important thing for you to do is seek out the assistance of a payroll or tax expert, like the ones at Charlotte Payroll, to see what you can do in order to claim the Employee Retention Credit. This can make the difference between your business succeeding and struggling, so don’t hesitate to see if you qualify.

Information on Processing Times

The Employee Retention Credit (ERC) has been a source of frustration for many businesses waiting for their refunds. The IRS has encountered difficulty processing a large number of ERC refunds, resulting in significant delays. This has caused many business owners to worry about the status of their refunds, but there are steps they can take to find out what’s going on.

To inquire about the status of an ERC refund, you should consider contacting the IRS through their helpline or website. You’ll need to provide specific information, such as your employer ID number, SSN, and tax return data. The IRS will use this information to determine the status of your ERC refund, and a notification will be sent in approximately four weeks.

It’s important to note that the refund process cannot be expedited, and phone inquiries to the IRS may result in lengthy wait times or may go unanswered. Despite these challenges, it’s crucial to pursue the refund.

The ERC credit has been a crucial lifeline for employers during the COVID-19 pandemic, helping them retain their employees. The IRS has made it more accessible to a broader range of businesses and employees and has made it refundable, meaning businesses are still eligible for a refund if they’ve paid taxes during the year.

The processing time for ERC refunds typically takes between six to nine months after businesses have filed for them, but the waiting period varies depending on the business.

If you are unfamiliar with the ERC or how to file a claim, we can help. We can assist in calculating the tax credit and provide valuable information on filing and receiving the ERC refund. We can also determine eligibility for an ERTC refund and help in claiming it promptly. Contact us today to learn more.

Do You Qualify For The ERC?

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