We continue to be surprised by the number of employers who assume they do not qualify for the Employee Retention Credit (ERC). The Employee Retention Credit is a refundable tax credit for employers that was put into law through the CARES Act. This credit is used to offset employment taxes paid by an employer to offer relief due to the coronavirus pandemic.
The Employee Retention Credit is an incentive for employers to keep employees on staff. This credit helps offset employer costs while preserving jobs. The credit is claimed on quarterly tax returns and provides immediate relief to employers by reducing employment tax deposits. In some cases, employers may be eligible to request an advance from the IRS.
The 5 Most Common Reasons Why Employers Have Not Taken Advantage of ERC
- I assumed that I wouldn’t qualify because my only payroll is my owners’ payroll
- I assumed that I wouldn’t qualify because my income wasn’t down by 50%
- I assumed that I wouldn’t qualify because I took a PPP loan
- I assumed that if I qualified, my payroll processor/CPA/tax preparer would have told me that I qualified and sent me the paperwork
- I assumed that I wouldn’t qualify because my business didn’t close
Do Not Assume That You Do Not Qualify for the Employee Retention Credit!
What Business Owners Should Do:
Schedule a brief call with us today and we can help you determine your eligibility.
Moskowitz LLP helps many businesses claim these payroll-based tax incentives. With the help of our experienced tax professionals, you can apply for the ERC and potentially qualify for other incentives. We will also help you meet record-keeping needs applicable to the ERC, PPP forgiveness, and other credits.
Steve Moskowitz and Moskowitz LLP appreciate the sweat and tears that go into building a business, and we want you to benefit from the tax laws. These tax breaks were enacted with you in mind. Your clients and employees are counting on you to claim what is yours.