The ERC program offers small businesses a rebate of up to $7,000 per employee for qualified reductions in gross receipts during the COVID-19 pandemic. Businesses that are not eligible for the ERC should speak with their accountant and/or payroll company to discuss other tax relief programs available as part of the Coronavirus Aid Relief and Economic Security Act.

The ERC program has undergone several rounds of beneficial amendments that have expanded the maximum rebate and made it easier to qualify. However, this expansion has also made the process of completing and filing tax credit applications more complicated. Many businesses have opted to use a service like ERTC Today to streamline the application process and maximize their potential rebates. This service is 100% IRS compliant, provides expert consultations, minimal upfront costs, and has a high success rate with clients.

In order to estimate the amount of ERC your business may be entitled to, start by multiplying each employee’s qualified wages, by quarter, by 50%. This will give you the amount of the ERC applicable to that employee for that quarter. Repeat this step for each employee impacted by the ERC during the qualified time period. Once you have the total year-to-date cumulative amount for each impacted employee, compare that number to the threshold of $5,000. If the estimated amount of the credit is greater than the threshold, your business will need to file IRS Form 941-X for the ^affected quarters in order to receive an offset to employment taxes due.

It is important to note that if your business has already received a PPP loan, or was offered a PPP loan in the first round of ERTC funding, you can not claim the credit for that quarter. However, you can still claim the ERC for other impacted quarters, as long as you did not receive a PPP loan in that round.

If your business is eligible for the ERTC, you can contact Dean Dorton to get a quote for professional services needed to prepare and file the necessary forms and schedules.We have an experienced team of CPAs ready to help you with your ERTC refund, tax credit, and ERTC Tax Credit Team other pandemic relief programs. We will be happy to provide consultation, collaboration, or confirmation as needed in your journey back to sustainability. We look forward to hearing from you soon