Employee Retention Tax Credit Offered By Dyer & Associates CPA, PLLC
At Dyer & Associates CPA, PLLC, we are helping businesses analyze, record, and document the Employee Retention Tax Credit so that they comply with the IRS and take advantage of the credit Congress enacted to help businesses during the pandemic. This is a refundable tax credit against a portion of the Social Security tax equal to fifty percent of wages paid to your employees on or after March 12, 2020 to December 31, 2020. This percentage increased to seventy percent in 2021.
The Employee Retention Tax Credit (ERTC) is refundable real tax dollars available to businesses. These dollars can now be applied for in addition to receiving the Paycheck Protection Plan (PPP) monies and receiving PPP loan forgiveness. At the beginning of the Cares Act, which was signed on March 27th, 2020, you had to choose between the ERTC or the PPP. Most businesses choose the PPP. When the American Rescue Plan Act was signed on March 11th, 2021 (ARPA), regulations allowed businesses to claim both as long as they did not use PPP monies to apply for the ERTC credit.
This service enables our clients to get every credit they deserve and eliminates some of the previous confusion over the ERTC. There have been multiple changes to the credit, and not all businesses are aware of the newest provisions. Early on, businesses had to decide between the ERTC and the PPP. Now with the latest changes, companies can apply for both programs. This will benefit businesses with full-time employees under a hundred in 2020 or under 500 in 2021. It is based on full-time equivalent unit employees, so there are calculations involved, and a company may qualify even though they have more employees depending on how employees were paid.
In order to qualify for the ERTC, you have to document your impact. There are several ways to do this.
If your business had a full or partial shutdown by government order is one way, if your gross receipts for a single quarter of 2020 fell by 50% versus the same quarter of 2019 (for the 2020 tax credit. Another way is if you had a 20% reduction in gross receipts in 2021 compared to 2019.
There are other ways to show an impact on your business if you had to adjust your business hours and employee hours or change product offerings if shutdowns impacted your business for sanitation and cleaning. If you had to limit the services or location of your business, these could qualify.
If you are looking for accountants, tax preparers, and financial advisors in Hernando, MS, reach out to us at (662) 429-2960 or send us an email at Info@dyer-cpa.com. Our fees are variable based on the service required. Contact us to get started on this tax credit for your business. We are a family-based certified public accounting firm. For over twenty-five years, we have worked with small businesses in Hernando and surrounding areas. In that time, we have cultivated the experience and knowledge base to become a valuable resource to our clients. We are available throughout the year to assist with accounting and financial matters and other organizational issues as questions arise.
We offer services including new business services, tax preparation and planning, tax resolution and IRS representation, small business accounting and bookkeeping, accounting-online services, and employee retention tax credit. We serve clients across Hernando and the surrounding areas.