What is the Employee Retention Credit?
The ERC is a new tax credit created under the CARES Act as a relief measure for businesses to encourage them to keep employees on their payroll. Many business owners (like Dentists) may not realize that there is tax credit for employers like them who were impacted by COVID-19. The ERC legislation was recently expanded under the Consolidated Appropriations Act which took effect on January 1, 2021- making it easier to qualify for with significantly more value, up to a $7K credit per employee.
Remember when everyone got stimulus checks? Consider this your opportunity to earn back as a business owner.
This tax credit can mean significant tax savings for small to medium sized businesses as they head towards financial recovery!
Do you qualify for the Employee Retention Tax Credit?
Was your business affected by government shutdowns? Did you lose money due to the impact of the COVID-19 pandemic? Find out if you can claim up to $28,000 in tax relief per employee with our team's help and quick assessment with a Discovery Call.
How Much Is the Credit?
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2020:
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Eligibility: Decline in gross receipts of 50%+ OR suspension of operations
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Benefit: Up to $5k per employee per year as a cash refund
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2021:
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Eligibility: Decline in gross receipts of only 20%+ in 2021 or suspension of operations
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Benefit: Up to $7K per employee PER QUARTER as a cash refund
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= ($28k per employee Max)
Nothing upfront. The tax firm simply gets paid from a percentage of the refund that they find for you. Essentially, they do the work in substantiating your report and ensuring IRS compliance and benefit only if you do too.
What does it cost YOU?
How to Claim ERC:
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Under the ERC, an eligible employer may claim a payroll tax credit to offset all federal employment tax paid from March 13, 2020 until September 30, 2021.
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Eligible employers include those who experience a suspension of activity due to a COVID-19 governmental order OR those who experienced a significant decline in gross receipts: 50%+ for 2020 and 20%+ for 2021 compared to 2019.
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Employers may claim up to $5,000 per employee for all of 2020 and up to $7,000 per employee per eligible quarter in 2021.
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If you weren't eligible to claim in 2020, you may be eligible now! This credit can be claimed retroactively. File now!
Check out what our recent clients have been saving!
By scheduling a Discovery Call with our friendly, knowledgeable team at Leyton, you can understand your eligibility and quantify your potential tax credit in just 30 quick minutes. It's that simple.
If you are not eligible, there is no catch- you are told upfront with no strings attached.
If you are eligible and you want to proceed with claiming your ERC, the team will set up another phone call to get the ball rolling.
Do yourself a favor and at least schedule a quick call- you have nothing to lose, but a lot to gain (back)! Get your questions answered and see what is in it for you.
But DO NOT miss out on this while it is available to us.
Leyton has built a team specific to helping you understand your qualifications and any questions you may have regarding this new tax credit. It's free and only 30 minute of your time.
This team of professionals can guide you through the claim process, prepare draft forms 941-X and, if applicable, provide these documents to your CPA or payroll provider. Their goal is to make this process straightforward and eliminate the barriers that keep American business owners from taking advantage of this tax credit opportunity.