September 17, 2022

Understanding the employee retention tax credit.

Understanding the employee retention tax credit.

The ERTC  is an IRS tax credit that can give you up to 26 000 $ per employee.

The ERC is an IRS tax rebate created under the CARES Act and designed to help small businesses retain their employees during these difficult times. It is currently one of the largest benefits available to business owners, delivering thousands of dollars per employee with qualified wages. As a result of ERC expansion effective January 1, 2021, all employers who took PPP loans may be eligible for the ERC for 2020 and 2021.

The ERC in details

The global emergency was a big challenge for our nation's companies. With the general shut down the global economy suffered a serious damage that left many businesses in a precarious situation.Fortunately, several government programs are helping companies in the process of recovering their financial health. One such program is the Employee Retention Credit (ERC), in which business owners impacted by the crisis can claim generous rebates for each W-2 employee on their payroll both in 2020 and 2021.It was signed into law on March 27, 2020, as part of the CARES Act. Although the bill was significantly extended in 2021, many companies are not using this benefit due to the extremely complex tax code and qualifications.

Extended eligibility period

Although the bill was significantly extended in 2021, many companies are not using this benefit due to the extremely complex tax code and qualifications.

What you should know

Do I have to repay the ERC?

No. This is not a loan, nor is it a grant. It as a refund which means that you can use the money in any way you like.

I received a PPP loan, am I disqualified?

You can still qualify for an ERC rebate check, even if you had a PPP or PPP-2 loan. Initially the CARES Act prohibited having both an ERC and a PPP loan, but on March 11, 2021, The American Rescue Plan Act of 2021 was signed into law and included many modifications and expansions to existing elements of previous stimulus programs. Your business can now have both a PPP loan and ERC rebate, however, special financial processes around payroll wages and attribution is now required.I

did not have a revenue reduction, am I disqualified?

If your business had to change operations due to governmental orders you still might be able to qualify. Most of our experts find new cases everyday of business owners that were told they did not meet the criteria to qualify, but after a free consultation they were able to claim ERC grants.

How much will this cost?

Caesar Capital Consultants fees are 100% performance based. We do not charge any upfront fees and our consultation is completely FREE. We charge a percentage of the claim amount. We get on average 30 % more than local CPAs or entrepreneurs trying to apply on their own. Additionally, we have a 100 % success rate and 0% dispute rate. To summarize, we get more, faster and without risk.

Will the ERC funds run out?

It has not been indicated that the funds will run out, however it also was not indicated with previous emergency aid programs.

Quick review of the program

  1. ERTC is not a loan
  2. Up to $26,000 per employee
  3. Immediate cash infusion usable at your discretion
  4. For essential and non-essential businesses
  5. Available even if you got PPP loans
  6. For more information, visit the IRS site here

Our latest articles.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolores.

What is your next goal?

CCC is there to help you leverage incentives and propel your growth.