OP Consulting – Smart Capital Solutions
Claim The Employee Retention Credit Today
Are you a business owner who kept employees on payroll during COVID-19?
You could be eligible for up to $26,000 per employee through the Employee Retention Credit (ERC). This refundable tax credit was designed to reward businesses that maintained their workforce during challenging times. Our team of tax specialists can help determine your eligibility and maximize your claim.
Get StartedWhat is the Employee Retention Credit?
The Employee Retention Credit (ERC) offers a refundable tax credit to eligible employers who continued paying employees during the COVID-19 pandemic.
The ERC is a refundable tax credit against certain employment taxes equal to 50% of qualified wages (including health plan expenses) that eligible employers pay their employees. For 2020, this credit applies to wages paid from March 13, 2020, through December 31, 2020. For 2021, the credit was expanded to 70% of qualified wages paid from January 1, 2021, through September 30, 2021.
Eligible employers can claim up to $5,000 per employee for 2020 and up to $7,000 per employee per quarter for the first three quarters of 2021 – potentially up to $26,000 per employee in total. This credit is available to businesses of all sizes that experienced either:
- A full or partial suspension of operations due to government orders limiting commerce, travel, or group meetings due to COVID-19, or
- A significant decline in gross receipts during the calendar quarter
How to Apply for the Employee Retention Tax Credit
Apply
Fill out our simple eligibility form to start the process. Our team will review your information and contact you to discuss next steps.
Upload
Provide the necessary documentation including payroll records, tax returns, and evidence of COVID-19 impact on your business.
Eligibility
Our tax specialists will determine your eligibility and calculate the maximum credit amount your business can claim.
Review
We'll prepare all necessary documentation and review everything with you before submission to ensure accuracy.
File Claim
We'll file the amended payroll tax returns (Form 941-X) with the IRS to claim your credit.
Get Funded
Receive your refund directly from the IRS. Processing times typically range from 6-9 months.
Common Questions About ERC
Businesses qualify if they: 1) Had operations fully or partially suspended due to government orders related to COVID-19, or 2) Experienced a significant decline in gross receipts (50% for 2020, 20% for 2021) compared to the same quarter in 2019. This includes businesses of all sizes, non-profits, and even startups formed during the pandemic.
For 2020, the credit equals 50% of qualified wages (up to $10,000 per employee annually), with a maximum credit of $5,000 per employee. For 2021, the credit increased to 70% of qualified wages (up to $10,000 per employee per quarter) for Q1-Q3, with a maximum credit of $7,000 per employee per quarter, or up to $21,000 per employee for 2021.
Yes. Initially, businesses couldn't claim both, but the Consolidated Appropriations Act of December 2020 changed this rule. You can now claim the ERC even if you received a PPP loan. However, you cannot use the same wages for both programs (no "double-dipping").
For most businesses, the deadline to file amended payroll tax returns (Form 941-X) is three years from the date the original return was filed or two years from when the taxes were paid, whichever is later. For 2020 quarters, this generally means filing by April 15, 2024, and for 2021 quarters, by April 15, 2025.
Currently, the IRS is experiencing significant backlogs. Most businesses are seeing processing times of 6-9 months, though some refunds have taken up to 12 months. Our team will help monitor your claim status throughout the process.
You'll need: 1) Quarterly payroll tax returns (Form 941) for relevant periods, 2) Documentation showing eligibility (government orders affecting your business or financial statements showing revenue decline), 3) Payroll records showing qualified wages and health insurance costs, 4) PPP loan documentation (if applicable) to ensure no double-dipping.
The ERC itself is not taxable income. However, there is a tax impact because the wages used to calculate the credit cannot be deducted as a business expense. This effectively reduces your wage deduction by the amount of the credit received.
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