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Employers: The Employee Retention Credit (ERC) is a tax credit for employers. Take advantage of the new COVID-19 Employee Retention Credit (ERC) while it’s still available. If your business or non-profit continued to pay employees on payroll in 2020 and 2021 despite the pandemic, governmental orders, and supply chain problems, you have an excellent chance of up to $26,000 per employee. Many
businesses did not qualify at the beginning of the program, but may qualify under revisions of the Cares Act. You can still apply.
The ERC is claimed by amending your business's quarterly IRS payroll tax returns and is based on how much money the business paid its employees in 2020 and 2021. A business may be eligible for the ERC if it had a significant decline in revenue in any quarter, from the beginning of the pandemic through the third quarter of 2021 (called the Gross Receipts Test). A business may be eligible for the ERC if governmental orders limited its operations by forcing the business to close, required capacity limitations, or restricted its business functions in other ways (called the Partial Shutdown Test).
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At Torchlight Tax, the steps in ERC application and delivery are seven-fold.
If you do not qualify for the ERC by the Gross Receipts Test, there is a second independent test that you take.
There is a common misunderstanding among taxpayers and inadequately trained tax professionals. They think the IRS gives…
Getting an ERC, if you truly qualify, can be a huge boon for you and your business. There can be a lot of money involved.
Getting an ERC, if you truly qualify, can be a huge boon for you and your business. There can be a lot of money involved here.