Was your business impacted negatively by the pandemic? You may be eligible for the Employee Retention Credit (ERC) tax refund.
July 13, 2022
If your company was negatively impacted by the COVID 19 pandemic, you should understand the opportunity that the Employee Retention Credit offers your business. In 2020 Congress passed several COVID relief bills and one of those established the ERC program. The ERC was developed to incentivize businesses that kept employees on payroll during the pandemic. Originally, companies could participate in either the Paycheck Protection Plan (PPP) or the ERC, but not both. In early 2021, guidelines changed to permit businesses to claim ERC in addition to PPP funds. Great news for many businesses!
There are several ways you can check into this for your business including a quick call with your CPA or tax advisor or you can take advantage of this a resource from SBAM – ERC Today. “We worked with a lot of business owners to secure their credits during the ’20-’21 pandemic period,” says John Galles, former SBAM Executive Director and presently a consultant at ERC Today. If you desire, ERC Today accountants specializing exclusively in ERC tax refund recovery will work along side your CPA or tax advisor to determine if your business is eligible for the program. SBAM’s goal is to help ensure that all eligible Michigan businesses recover the tax credits they earned by retaining their team members through difficult times. Eligible employers can capture as much as $26,000 per employee, and the really great news is that they can use that refund however they like with no restrictions.
Your business could qualify for thousands of dollars per eligible employee. The IRS anticipates over 70% of businesses and non-profits, from a wide range of industries, to be good candidates for the ERC, but that only about 15% of eligible businesses have taken advantage of it so far.
Why Apply Now
Currently, your business is eligible to file for a retroactive refund three years from the date of your original qualifying tax filing, thanks to a program extension. For 2020, businesses would have until 2023 to file for the tax refund. However, government-funded programs are subject to change and other funds like PPP and Restaurant Revitalization have run out without notice.
“Government-funded programs can offer great benefits but are unpredictable,” says Galles. “It’s important to apply early in order to receive the entire amount you qualify for because the program could change without notice.” “Even if the employers have already claimed their tax credits or recovered their tax refund, it is estimated that most employers leave 70% of their entitlements on the table. We also encourage them to apply to ERC Today to see if they have maximized their recovery,” adds Galles.
Free Eligibility Check with ERC Today
A 10-minute online qualification questionnaire can determine whether your business is eligible for the tax credit. This questionnaire can be completed by the business owner, CPA or tax advisor. A second questionnaire can estimate the amount of recovery. If eligible, supporting documentation is required to process the application. SBAM has partnered with ERC Today, an accounting firm that specializes exclusively in ERC recovery, to provide a free ERC analysis of your company. As of 2021, ERC Today has helped over 6,000 businesses receive $95 million in cash incentives from federal and state governments. There is no cost to find out if you are eligible for the ERC tax refund. Expert accountants at ERC Today will evaluate your tax credit eligibility by applying their specialized knowledge to the information you provide. If you are eligible and decide to move ahead, ERC Today will receive a percentage of your tax refund when you receive it. Additionally, with this special SBAM membership benefit, eligible SBAM members will each receive $250 fee discount.
As of today, the ERC program funds are still available. To see if your business qualifies visit https://www.sbam.org/employee-retention-credit/ and start your application today. Be sure to use the referral code: SBAM. Please note that this refundable tax credit is not exclusive through ERC Today. If you have any questions about the ERC and whether your company is eligible, please contact your CPA or tax advisor.