The Employee Retention Credit (ERC) program is part of the $2.1 trillion CARES Act 2020 & subsequent Consolidated Appropriations Act 2021. ERC regulations have changed, meaning:
However, the ERC regulations are complicated and most companies offering ERC help are averaging below $10K of the possible $26K per W2 employee and have a high rejection rate.. They are also taking 2 - 4 months to process the paperwork before submitting to the IRS Who take another 3 - 5 months.
If you are a non-profit, ministry organization or church, as an employer you still pay employment taxes and can qualify for the ERC tax refund.
The federal government established the Employee Retention (tax) Credit (ERC) as a refundable employment tax credit to help businesses with the cost of keeping staff employed. You can Google it.
With new legislation now qualifying companies (& non-profits) with 3 - 499 full time (+130hrs/month) employees to receive UP TO a $26,000 per employee tax credit/refund, even if they have received PPP.
The extremely complex, convoluted and ever changing ERC regulations with multiple thousands of pages of regulations to keep up with, has resulted in 90% of entitled companies unaware they can now claim.
Your first thought is to have your CPA file. Your CPA who you have a relationship with and trust - just like your GP - but you wouldn’t hesitate to go to a specialist when medically expedient Ie a brain or heart problem.
It is financially expedient to consult an ERC specialist to maximize your ERC return/refund. See the statistics below.
Capital Tree is a Financial and ERC specialist company and knows how to navigate through the “minefield” of the CARES Act and specifically the ERC regulations. Their results speak for themselves:
* Many ERC processing companies are taking 2 - 4 month just to process and file paperwork to IRS, then there is a 3 - 5 month wait for refund. Qualifying Capital Tree clients can have access to up to 70% of their ERC refund in approx. 4 weeks from initially submitting their paperwork.
There are many companies that offer tax credit and incentive consulting services but many do not even have CPA’s and their average return is less than $10K ERC per employee, meaning they could be leaving over $100k “on the table” for every 10 employees. These companies also have a high rejection rate because they are “general practitioners“, tax preparers not ERC specialist.
If your tax preparer even CPA says they can file for you, ask how many ERC filings they have done and what their average per employee return was And can they get you access to your refund in about 4 weeks. As good as they maybe in other areas, if their average is less than $20k, you may want to use a specialist.