Nonprofits, please pay attention! The Employee Retention Credit (ERC) is a big deal.
To bottom line it for you: if your organization kept staff on payroll in 2020 and 2021, despite a significant decline in gross revenue, the ERC may award you with a potentially massive payroll tax credit - up to $5,000 per employee for 2020 and up to $21,000 per employee in 2021. (Note: Due to recent legislation, 4th quarter wages in 2021 are not eligible for the ERC.)
This credit is refundable, too. That means the IRS will send you a check for what you are owed after you make the claim. Pennies from heaven, right?!
Now, is every business out there eligible to claim the ERC? Nope. (Sorry, we wish it was so but we've got to be up front with you on the facts!)
There are many complexities in play, despite what some blogs and news sources are saying. For example, the ERC "interacts" with the PPP and other stimulus-related credits. Eligibility must be carefully determined if you want to ensure that Uncle Sam doesn't ask for his money back on this thing at some point in the future...
How do you determine if you’re eligible?
It’s simple. A reputable tax or compliance firm (like us) can help you determine your eligibility and file the appropriate forms, tax returns, and paperwork, both with your payroll processor and with the federal government. We’ve made ourselves experts on the intricate details of the calculation and process. We've already started helping our current clients determine their eligibility and submit the appropriate documentation to the IRS. We know the ins and outs of the process which led us to build this eligibility questionnaire.
With your complete response, our team will determine if we can assist your organization in submitting a claim for the ERC. Upon completion of the questionnaire, our team will review your response. If you meet certain ERC eligibility criteria, we will contact you to set up a paid consultation to discuss the process, the credit itself, and review our fees.
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