By now, most companies have heard of or even claimed Employee Retention Tax Credits (ERTC) or a PPP Loan. Those that have taken advantage of the credit have seen hundreds of thousands to millions of dollars in benefits for retaining employees in 2020 and 2021. For example, one professional services firm with 19 eligible employees claimed nearly $500,000 in credits. ERTC has been a lifeline for so many businesses that struggled during the COVID-19 pandemic. Have you pursued it yet?
Companies can still claim Employee Retention Tax Credit (up to $26,000 per eligible employee). This valuable, refundable credit is available to employers that paid wages to eligible employees from March 13, 2020, through September 30, 2021 (see our 2020 vs. 2021 comparison chart). Even if a company received a PPP loan, the ERTC can still be utilized. Additionally, startups that began operations after February 15, 2020, are eligible for up to $100,000 of credits on wages paid from July 1, 2021 through December 31, 2021.
How Do I Know If I Qualify for ERTC?
Eligible employers must meet one of the following criteria to qualify for the credit:
- Have operations fully or partially suspended due to orders from a government authority; or
- Suffer a significant decline in quarterly gross revenue as measured against 2019 (50% decline for 2020; 20% decline for 2021)
While some additional rules and limitations apply, KBKG can help determine eligibility and an estimate of the potential benefit with a no risk assessment.
What are the Steps to Claiming ERTC and How Can KBKG Help?
Here at KBKG, we make the process simple and take the administrative burden off of your plate. Here’s how it works when you partner with us:
- Step 1: Determine your eligibility and qualifying wages per employee for ERTC, as well as any other tax benefits you may qualify for that have been overlooked.
- Step 2: Calculate the credits, including analysis and optimization of PPP interplay to ensure PPP funds are not jeopardized.
- Step 3: Prepare data for Form 941-X and documentation supporting your eligibility.
- Step 4: We stay committed to assisting you and answering your questions after filing.
Can I Estimate My ERTC Benefit?
Try our free ERTC benefit calculator to estimate your potential benefits. Contact us if you would like someone to walk you through how to use the calculator. Ready to Get Started? Contact us today for a no risk assessment of your company’s eligibility for ERTC.
About the Author
Ian Williams, MAcc – Director
Ian Williams is a Director for KBKG, specializing in Research & Development. Ian spent eleven years at a Big Four accounting firm specializing in R&D tax credits and fixed asset studies across a variety of industries. He has extensive experience in software, heavy manufacturing, aerospace, automotive, and consumer products industries, as well as defending credit claims with the IRS. » Full Bio