By Les May 23, 2022

The Employee Retention Tax Credit Is An Opportunity Many Businesses Are Missing Out On

Tax professionals may be missing the credit available for their clients. This is simply because they think that if they have not lost money during the Pandemic then they aren’t qualified for the credit. That is simply not so, the credit available can be as much as $33,000 per employee which is a refundable credit – that is hard cash in your pocket. That’s something to go after!

This article is to ensure that businesses are aware of what they qualify for and to ensure they can get a professional CPA report verifying exactly what cash rebate is due to them.

If You Received PPP Funds You are Still Eligible for the Employee Retention Tax Credit

The first misconception that many professionals have is that if you were qualified for ppp lending and received forgiveness for that loan, then you are not eligible for the ERTC funds. This is false. If you obtained ppp funds, you are still able to obtain the employee retention tax credit report for ppp.

However, that doesn’t imply that you can’t utilize both programs to maximize both credit ratings.

For example, if somebody makes twenty thousand per quarter or eighty thousand a year for that quarter, you can use 10 thousand dollars of wages toward the ertc credit history and also ten thousand dollars toward ppp forgiveness. This is going to make best use of both credits and give you the most dollars in the bank.

You cannot double dip with ppp and ertc funds, meaning that you cannot make use of funds that are used to claim the employee retention credit to apply towards ppp financing forgiveness. This is why it is very important to locate a professional specializing in ertc processing. You can then get the maximum possible credit, while still achieving ppp finance forgiveness.

If your Revenue Is Up You Can Still Qualify for the Employee Retention Tax Credit

Another common misconception is that if your revenue went up or has not substantially decreased, you are not qualified for the Employee Retention Tax Credit. But there is an income element where you can be qualified. If your revenue decreased 50% in 2020 or 20% per quarter in 2021, you are eligible for ertc, but that’s not the only avenue open to you for ertc funds.

If your business was significantly affected by a federal government shutdown but overall revenues were up you can still qualify. Let’s use the example of a restaurant whereby you have indoor eating and you have takeout. Let’s say interior dining was normally more than 10 percent of your revenue. And because of a federal government shutdown or federal government orders. you were required to socially distance, thereby restricting the ability of your dining room by 50 percent. This then qualifies you for the employee retention tax credit. This is in spite of the fact that your takeout sales, skyrocketed and you’ve actually done exceptionally well throughout the pandemic. This is the type of opportunity that most professionals are missing out on and are also not checking out carefully.

Another example where one can get the employee tax retention credit is due to a disturbance in your supply chain. An auto manufacturer having its supply chain disrupted as a result cannot finish their cars for production nor put those cars for sale and therefore qualifies.

One more example is a law firm that primarily concentrates on litigation. With the courts shut down for an excellent part of 2020 and also 2021, the law firm lost greater than 10 percent of its earnings and consequently they’re now qualified for the credit.

A great deal of other professionals are missing these type of qualification criteria because they’re not realizing that even if earnings are up or not substantially reduced you still may be eligible for these ertc funds.

To find out exactly what your business is qualified to receive by simply answer 9 questions here https://ertcsubmissions.com and a CPA specialist in ertc funding will gladly inform you what you entitled to for no charge or obligation.