For companies that kept employees on payroll during COVID (2020 & 2021), the IRS will award them with a tax refund, of up to $26,000 per employee, that goes straight to their pockets. The IRS recently issued a Moratorium to counter companies filing fraudulent, baseless claims.
19 Facts to Know
- The Employee Retention Credit (ERC) is a tax credit that was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020.
- Wage deductions claimed on the business’ federal income tax return must be reduced by the amount of the credit.
- The ERC is designed to help businesses keep their employees on the payroll during the COVID-19 pandemic.
- The ERC is a dollar-for-dollar credit against a business’s federal income tax liability.
- The ERC is available to businesses of all sizes, including sole proprietorships, partnerships, corporations, and nonprofits.
- To be eligible for the ERC, a business must have:
- Paid qualified wages to employees during the covered period.
- Experienced a significant decline in gross receipts during the covered period.
- Were affected by government mandates (this is where most of the credits are).
- The covered period for the ERC is the period beginning on March 13, 2020, and ending on September 30, 2021 (6 quarters in total).
- The amount of the ERC is equal to 50% of the qualified wages paid to employees during the period.
- The maximum amount of the ERC that a business can claim is $5,000 per employee in 2020. And $7,000 per employee-per quarter in 2021 up to 3 Quarters. In total, companies are eligible for up to $26,000 per employee.
- Businesses can claim the ERC on their federal income tax return for the year in which the qualified wages were paid.
- Businesses that received a Paycheck Protection Program (PPP) loan may also be eligible for the ERC.
- However, businesses that received a PPP loan cannot claim the ERC for wages that were used to repay the PPP loan.
- Businesses that are unsure if they are eligible for the ERC should consult with CHS.
- The ERC is a valuable tax credit that can help businesses keep their
employees on the payroll during the COVID-19 pandemic. - Businesses that are eligible for the ERC should claim it to reduce their federal income tax liability.
- The IRS has provided guidance on the ERC, which can be found on the IRS website.
- The IRS has issued stark warnings about false eligibility claims.
- The deadline to claim the ERC for 2020 is April 15, 2024.
- The deadline to claim the ERC for 2021 is April 15, 2025.
CHS Payroll ERC Division
There are a lot of ERC companies, what makes us different?
Here’s what sets us apart:
- Expertise: Our seasoned team of tax lawyers knows tax regulations inside and out,
ensuring you receive every credit you’re entitled to. - History: CHS has a 20 year history serving clients with exceptionally high
standards. - Tailored Strategies: Our approach is all about crafting strategies that maximize
your business’s specific ERTC benefits. No one-size-fits-all solutions here! - Reliable Support: Our dedicated support team is always ready to address your
questions and concerns promptly.
● We offer absolute maximization of each dollar owed to them by the IRS
● We offer audit protection in the event that the IRS wants to take a closer look at the
claims
● We charge 18% which includes ALL these offerings:- Absolute maximization of the ERC per the IRS guidelines
- This includes a free initial projection,
- An initial interview with attorneys
- Full suite of professionals on your case:
- Senior Attorney
- Associate Attorney
- Legal Assistant
- Client Liaison
- The CHS team
- A memo which includes:
- Preparation of an affidavit of facts
- An audit-ready memo of why the client qualifies for the ERC
- Full audit protection package which includes:
- Represent the CHS Payroll’s client before the IRS concerning the Form
941X(s); and, - Provide audit and appeals representation for the CHS Payroll’s client if a
941X prepared by the Firm is audited.
- Represent the CHS Payroll’s client before the IRS concerning the Form