Does Your Business Qualify For The Employee Retention Credit 2020 & 2021?
webmanager • May 17th, 2023
If you’re anything like our current clients, you’re probably skeptical of just how much you can get back in tax refunds and credits from the Employee Retention Credit.
$5,000?
$10,000?
$100,000!?
These are real numbers!
These are real amounts of cash being received by businesses across the country thanks to the Employee Retention Credit.
So, what is the Employee Retention Credit, how much can you receive, and most importantly, does your business qualify?
That’s what we’ll answer for you with this blog post.
Let’s dive in.
First things first, it’s important to understand what the Employee Retention Credit (ERC) is.
The Employee Retention Credit is a refundable tax credit from the IRS based on wages you paid/will pay employees in 2020 and 2021. Essentially, it’s more stimulus funding for your business in the aftermath of COVID-19.
It was originally signed into law with the CARES Act in 2020, however, it has only recently become the powerhouse stimulus that it is today within the past few months.
So, let’s get to the thousand dollar question:
“How much money can I really receive from ERC?”
And the answer is, ‘it depends!’ (of course).
However, it’s most likely in the tens of thousands.
Here’s a simplified calculation:
As an example, if you have 5 employees, that means your business could earn up to $165,000 back in tax credits!
However, there are a few factors to consider, and the amount of money you’ll actually receive depends on your unique business situation.
Factors to consider include:
There are additional factors to take in, such as how many months after a qualifying quarter it took the business to recover, but we’ll leave the more complex factors to the calculations themselves. (These calculations are tricky for even the most qualified accountants.)
And there are a few criteria that can disqualify you altogether:
Curious if your small business qualifies for the Employee Retention Credit (ERC)? We made it easy for you!
Take our 60-second quiz to find out if your business qualifies for thousands of dollars back.
First, you’ll need to find an accountant with experience in Employee Retention Credits to calculate an accurate proposal for you.
Unfortunately, this might be harder than you’d think.
In short, the calculations are much trickier than they seem, and the work involves going back and amending all previously submitted tax returns for 2020 and 2021.
It’s no wonder many accountants are staying well clear!
However, here at Basta & Company, we are helping as many businesses as possible apply for the Employee Retention Credit (ERC).
The Employee Retention Credit is bringing much-needed relief to so many small businesses struggling financially post COVID-19, and we’re here to help.
To start, take our Do You Qualify Quiz in order to find out if your business qualifies for the Employee Retention Credit (ERC).
If qualified, you can book a call with one of our accountants to get the ball rolling.
Note: the deadline to claim the Employee Retention Credit for 2020 and 2021 is December 31st, 2021.
If you have a question or concern, you can reach out to me personally at any time by filling in our Get in Touch page here.
Until next time!
Samy Basta brings you more than 20 years experience in tax, financial, and business consulting to his role as founder of Basta & Company. His focus is primarily strategic business planning, empowering clients to set priorities, focus energy and resources, and strengthen operations. In addition, Samy and his firm provide strategic counsel, and technical insight, on a wide range of needs, including tax saving strategies, tax return compliance, as well as choice of entity.
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San Francisco, CA 94111