Employee Retention Tax Credit (ERTC) Service
What is ERTC?
ERTC stands for “Employee Retention Tax Credit” and is a government benefit of up to $26,000 per employee paid directly to a business owner for retaining its employees throughout the pandemic. It is not a loan or a grant, but is a refund of a portion of the payroll taxes you already paid.
VerusGP Employee Retention Tax Credit (ERTC) Service
The COVID-19 pandemic has impacted businesses of every size. The Federal government has established ERTC and several other programs like Payment Protection Program (PPP) to provide financial assistance to businesses dealing with the unique challenges of the pandemic. Every small business should be aware of ERTC as many qualify for the program. The value of each claim is dependent on the unique circumstances of each business but could be as much as $26,000 per employee. VerusGP has developed a process that will help you navigate the program to ensure you get the funds your business is entitled to. A brief conversation with one of our intake specialists will start the process to potentially recovering thousands of dollars per employee for your business.
Unlike other ERTC processors, VerusGP performs the analysis at absolutely no cost to you; and you only compensate us if and when you receive ERTC funds. We also back our calculations in the event of an audit. If you are an eligible employer and choose to work with VerusGP, our team of professionals will help you through the process from initial intake through receipt of your credit refund from the IRS. Many participants in the ERTC program receive checks in about 180 days from filing with the IRS.
If you haven’t previously heard about the Employee Retention Tax Credit (ERTC), don’t worry… you are not alone.
The ERTC a is relatively new program, created by Congress in March of 2020 as part of the CARES Act. Due to the complexities of the Act, it is not surprising that many business owners who have been focused on protecting their employees and customers had little time to learn about programs that were being designed to help them meet some of the challenges of COVID. These programs have also evolved since their original implementation, and there is a great deal of outdated information circulating. Even if you’ve been previously told you do not qualify for ERTC, let us take a look again at no cost to you.
The ERTC is a refund of a portion of the payroll tax for Eligible Employers equal to a percentage of Qualified Wages (including allocable qualified health plan expenses) paid to their employees. The credit applies to qualified wages paid from March 13, 2020 through September 30, 2021 (“coverage period”), and is up to $5,000 per employee for 2020, and up to $7,000 per employee per quarter for 2021. The maximum credit for an Eligible Employer is $26,000 per W2 employee.
Not sure if you are an eligible employer… no problem, let us answer that question.
Things have changed since the program’s original roll-out in March of 2020. You may now be eligible even if you weren’t originally… For example, even if your firm received PPP funds, you can still be eligible for the ERTC program.
Do you have fewer than 100 Full Time W2 Employees for 2020? Fewer than 500 for 2021?
In general, eligible employers include those who carry on a trade or business between March 2020 and September 2021, including tax-exempt organizations, that either:
- Fully or partially suspended operation due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19; -OR-
- Experience a significant decline in gross receipts during the calendar quarter.
It is important to note that eligibility only requires one of the two qualifications above. You can still be eligible even if your business did not see a significant decline in gross receipts due to government orders related to COVID-19. That’s right, despite what you may have heard or read, a decline in revenue is NOT an absolute requirement.
Not sure what an “appropriate governmental” order is? Don’t worry. Our attorneys with decades of legal experience will make this determination based on your industry and location.
Wondering if you have any qualified wages… let us make that calculation.
In general, qualified wages include gross income paid to W-2 based employees during the coverage period. There are other sources of income which may be added to or subtracted to determine qualified wages, and VerusGP will run the very complex calculation to determine just how much your business is entitled to be refunded under ERTC.
If the coverage period has ended (September 30, 2021), am I too late for this program?… Absolutely not, but time is running out.
If you have submitted an IRS Form 941 tax filing for a quarter covered by the program you still have time to file an amended return to claim your credit, but it is important to address this quickly as there is limited time to file an amended Form 941 to claim your ERTC refund.