Viewpoint: The Employee Retention Credit Is A Valuable Benefit
by Admin
Posted on 16-11-2022 06:20 PM
Content
Even if you explored the ERC in the early days of Covid-19, you might find yourself pleasantly surprised if you take another look today. Eligible entities which receive a Restaurant tax credit for restaurants and hotels Revitalization Grant from the U.S. Small Business Administration may choose spend grant funds on payroll in calendar year 2021, which is an eligible expense.
We are working with hundreds of businesses in identifying and claiming their ERC. SRB Capital uses a combination of trained payroll tax experts, accounting personnel, and a robust set of data analysis tools. Our software development engineers spent months writing code to satisfy SBA and IRS Qualification Guidelines that analyze each employee for each pay and properly distribute within program guidelines.
Important Updates On The Employee Retention Tax Credit (ertc)
Given inflationary pressure I doubt that any meaningful extensions or enhancements of these employment-based tax credit programs will be forthcoming in the near future. In fact, Congress ended two or the three eligibility categories early on September employee retention credit recovery startup business 30, 2021 even though they were originally set to run through December 31, 2021. The SBA itself has identified potentially ineligible recipients, the letter said, such as clubs and hotels that failed to meet statutory eligibility criteria. "Money recovered from fraudulent and ineligible businesses can subsequently be used to help fund the many businesses who were unable to receive grants.
Many businesses are paying a large amount to the federal government to keep their cash for rebuilding their businesses. Qualified business owners were permitted to access this credit by reducing the tax deposits they normally have to make to federal government. Since then, the ERC has been significantly expanded and, in the most recent relief bill signed by the president, the ERC has been extended for all of 2021. When asked why, nearly half the respondents replied that they haven’t applied. They said they did not know if the company was eligible.
Employee Retention Credit Application Requirements
Cherry Bekaert Advisory LLC and its subsidiary entities are not licensed CPA firms. Hotels and restaurants that had normal operations for parts of their business but experienced full or partial suspension of other operations (such as in-house dining vs. carry out) also may qualify for the ERC. Businesses that began operations after February 2020 may qualify for specific startup rules that can provide up to $100,000 in refundable credits in 2021. Even organizations that have received PPP loans, Restaurant Revitalization Funds, or Shuttered Venue Operator Grants can still apply for ERC benefits. In fact, most employers that Cherry Bekaert has helped with securing the ERC have also received other incentives.