The Employee Retention Tax Credit (ERTC) is a refundable tax credit that businesses can claim for 2020 and 2021 on qualified wages paid to employees.
If your business was involved in a government-mandated shutdown, or has decreased revenue compared to quarters in 2019, you may qualify for the ERTC tax credit.
The benefits of the ERTC:
- There is a maximum credit amount of $7,000 per quarter per employee, for a maximum of $28,000 per employee per year for 2021.
- There is a maximum credit amount of $5,000 per employee for 2020.
- This credit is refundable, not just a reduction on future tax payments.
Does your business qualify?
To qualify for the ETRC, an eligible employer, including all members of a control group must either:
- Have had their operations fully or partially suspended due to orders from a governmental authority;
— OR —
- Have suffered a decline in quarterly gross receipts measured against the same quarter in 2019.
– For 2020: the decline is 50%
– For 2021: the decline is 20%
BRS will provide the following to assist you in claiming your ERTC:
- Assessment: Determine if the employer qualifies, which wages, and for which periods.
- Calculations: Prepare calculations to determine credit amounts for, past present and potential future periods
- Deliverables: For past periods, reconciled information to prepare Form 941X. For current and future periods, prepare Form 7200 for employer to submit and request advances.
Calculation and documentation of actual credits earned, and reconcile with advances. Audit support is included.
Contact us today
Find out if your business qualifies for tax credits through the ERTC.