Are you familiar with the Employee Retention Tax Credit (ERTC)?
I’m skeptical whenever the Internal Revenue Service (IRS) wants to give me a break. Such was the case when I learned about the Paycheck Protection Program (PPP). In simple terms, “The Cares Act” provided a $370 billion stimulus package for employers to meet certain payroll demands, rent requirements, loan payments, and other financial obligations. In the end, Congress was generous, and the loans were often forgiven in their entirety. Skepticism aside, this was a very good deal.
In Nehemiah Entrepreneurship Community’s upcoming Global Forum on Passive Income, I will be sharing more about the Employee Retention Tax Credit (ERTC) and how you can qualify for it. Click on the button below to find out more:
So I skeptically asked myself, what is the Employee Retention Tax Credit (ERTC), and how does it fit into the Congressional Relief Program? Well, The Paycheck Protection Program (PPP) loan helped you make payroll. The ERTC returns the overpayment of payroll taxes on qualifying wages paid on behalf of your employees during the pandemic. Not too difficult to understand, but the computation is tedious.
The only two ways that a business can qualify for the ERTC refund are:
Employers that carry on a trade or business during the calendar year 2020, including tax-exempt organizations, that either:
- Fully or partially suspend operation during any calendar quarter in 2020 due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19; or
- Experience a significant decline in gross receipts during the calendar quarter.
If you have W-2 employees in your business, you may qualify for the ERTC refund, but it is important that you choose wise counsel before proceeding:
- Choose a firm that specializes in tax credits.
- Ask for a free consultation and estimate of eligibility.
- Ask for a general business liability policy.
- Ask for defense in the event you are audited.
Finally, the ERTC refund is not to be feared but rather embraced. As Biblical Entrepreneurs, we always count the cost of conducting business. Even in uncertain times, most businesses can survive if they properly capitalize with cash in the bank.
The ERTC is an opportunity to put unrestricted cash in your account. I’ve partnered with the Nehemiah Entrepreneurship Community to provide free consultation and estimate the eligibility of members to help them avoid the misinformation and fraud that is going on around this program.
To schedule your free consultation, call me at 214-907-3238 or send me an email at email@example.com.
Richard Cole is a member of the Nehemiah Entrepreneurship Community and the Managing Broker for American Incentive Advisors, a consulting firm of CPAs and Tax attorneys specializing in tax credits, tax incentives, and tax recovery.
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