3 Reasons To Work With a CPA
Thought Leadership by KBKG
The Employee Retention Credit has benefited many businesses in the last few years. However, the ERC (or ERTC) tax credit has also been a boon for scam artists. The rules for claiming the credit are detailed and complex, leaving room for confusion and ambiguity among taxpayers. How can you ensure you do the right thing when filing your returns? We’ll examine three essential benefits you enjoy from working with certified public accountants.
Understanding the ERC Tax Credit
You may remember that the CARES Act of 2020 established this tax credit for the first time. The original credit applied to employee wages paid from March 13 to December 21, 2020. Subsequent laws expanded the time and scope of the credit: The Employee Retention Credit 2021 applies to wages paid from January 1 to September 30, 2021. Firms designated as recovery startup businesses — typically those launched during the pandemic — can also claim the credit for October 1 through December 31, 2021.
The Internal Revenue Service published a comparison chart outlining how the ERC works for each year. Employers claiming it for 2020 can take 50% of the wages they paid to employees. The maximum allowed is $5,000 per employee, exactly half the $10,000 upper eligible limit. The IRS permits 70% of wages employers pay and certain healthcare benefit costs. You can take a maximum of $7,000 quarterly for each employee, totaling $28,000.
Benefits of Using a CPA
IRS tax regulations are already complex, and the ERC is no exception. With this in mind, there are three core advantages you enjoy when working with a CPA for your ERC filing.
1. Accurate and Verifiable Filings
CPAs must meet high professional standards. While licensed and regulated by their state boards, certified accountants must also follow a Code of Conduct established by the Association of International Certified Professional Accountants. This code requires CPAs to serve the public interest while providing financial services by observing several critical practices:
- Integrity and objectivity
- Due care and competence
- Full disclosure of any conflicts of interest
- Preservation of client confidentiality
- Explicit commissions and referral fees to clients
These are the basic standards that any CPA must follow. Certified public accountants who partner with KBKG go a step further. By working with us, they demonstrate a dedication to preparing the most accurate, thorough, and verifiable filings for their clients.
2. Expertise You Can Trust
KBKG has supplied CPAs and businesses with ready-to-use tax solutions for over 20 years. Working with major corporations like Rolex and Costco, KBKG demonstrates sound industry knowledge and unmatched expertise with valuable tax insights and information on critical topics like the ERC.
3. Due Diligence and Care
At KBKG, we place a high priority on building solid relationships with clients and certified public accountants (valid cpa licenses). Before we offer any tax advice, we diligently and thoroughly research all the details.
Filing an improper ERC claim has serious consequences. Even if you’re the victim of an ERC scam, you’re still liable for repaying the credits you claim along with penalties and interest. KBKG’s meticulous approach sets us apart from “ERC mills” that make unfounded promises to firms that may not qualify for the credit. Our diligence and fact-finding result in the reliable information we publish and the advice and services we supply to our CPA and business clients.
Your ERC Tax Credit Experts
Filing for an ERC tax credit can feel like dodging land mines. You should have diligence, expertise, and care on your side. KBKG has helped certified public accountants and businesses with turnkey tax solutions for over 20 years. With an extensive knowledge base and industry-leading professionals, KBKG works to help clients gain the best possible tax savings outcomes. Find out what we can do for your firm: Contact us online or call toll-free at (877) 525-4462.
KBKG is providing the following services to assist with ERC:
- Determine if the employer qualifies, and if so, for which quarters,
- Determine which employee wages qualify
- Calculate credits, including analysis of PPP interplay, and
- Reconcile actual credits with advance credits requested
- Prepare reconciled data for Form 941-X
- Prepare documentation supporting a business’ qualifications
Curious to know more about the ERC credit? Contact us today.
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