Authorization

ERC Credit Causes Confusion For Many Small Business Owners

SAN FRANCISCO, CA / ACCESSWIRE / September 3, 2022 / The Employee Retention Credit (ERC) program is one of the last hopes for small business owners to claim new-found money within their existing business. It is also one of the most confusing and complex to figure out and calculate correctly. There are multiple ways for a company to qualify including revenue loss, shutdowns, or disruptions due to COVID-19. The problem? There are so many ERC credit rules and regulations which make it near impossible for companies to figure out on their own. Good news? Qualifying businesses can receive up to a $26,000 Internal Revenue Service (IRS) refund per W-2 employee on payroll during 2020 and 2021, and have up to three years to file amended 941-X returns to claim the ERC refund credit.
ERC Credit Causes Confusion For Many Small Business Owners
The ERC credit tax program has left many company executives, principals, owners, and managers thoroughly confused with how to determine eligibility and run accurate ERC calculations to determine their ERC credit refund. Image Credit: 123rf / Rh2010."With the Small Business Administration (SBA) COVID-19 loan programs either closed or out of funds, the Employee Retention Tax Credit (ERTC) program is one of the last hopes for small businesses to get money in the form of an ERC refund check from the IRS, but only if they qualify, and calculate their ERC credit correctly," said Marty Stewart, Chief Strategy Officer (CSO) for Disaster Loan Advisors (DLA).What is the Employee Retention Credit (ERC) Tax Credit?The ERC credit, or ERTC credit, is a refundable IRS tax credit / tax refund that all businesses and companies who qualify, may claim for each W-2 employee that was on payroll during the 2020 and 2021 tax years. The ERC credit is a valuable tax credit and is money the business has already paid the IRS in quarterly payroll taxes during the 2020 and 2021 business tax filing years. A business has up to three years into the future to file an amended IRS Form 941-X for each quarter they qualify for, in order to claim the ERC tax credit.In early 2020, many businesses scrambled to apply for the SBA EIDL loan and the PPP loan programs and had no knowledge of exactly what the ERC credit program was. In March 2020, the 116th Congress enacted the ERC as part of the The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a $2.2 trillion economic stimulus bill signed into law by former President Donald Trump on March 27, 2020.
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Декабрь 2022    »
ПнВтСрЧтПтСбВс
 1234
567891011
12131415161718
19202122232425
262728293031