The Employee Retention Credit (ERC) is a COVID relief program designed to provide a refundable payroll tax credit to eligible employers who provided compensation and/or employer paid health benefits to employees between March 12, 2020 and December 31, 2021.  The maximum benefit to an eligible employer is:

AM I AN ELIGIBLE EMPLOYER?

Eligible Employers are employers that carry on a trade or business during calendar year 2020 or 2021, including tax-exempt organizations, that either:

WHAT ELSE DO I NEED TO KNOW ABOUT THIS CREDIT?

This credit is designed to give employers a much needed financial boost to those who are facing disruption and even suspension to their operations due to the COVID pandemic.  It’s certainly worth getting excited about when looking at the maximum credit amounts stated above and applying that to the number of employees that have been employed since March of 2020.  However, certain complexities exist, including:

WHEN CAN I START THE REFUND PROCESS?

Now is the absolute best time to begin identifying your employee retention credits.  There is an opportunity RIGHT NOW to apply for and receive refunds for previous quarters in 2020 or advance payment on current quarter credits.

HOW CAN WE HELP?

Downey, Smith & Fier has been helping employers maximize their tax credits and incentives for almost 20 years.  The importance of understanding the tax laws and constant changes to programs like the employee retention credit can not be overstated.  DSF will provide an A to Z service that will include documenting and supporting business eligibility, identifying all eligible employees/wages, computing the maximum allowable tax credit values and preparing all necessary tax forms to apply for refunds.  DSF will ensure that your business not only receives current year benefits, but is refunded for any 2020 benefits.  If you believe you are an eligible employer, do not wait to contact DSF to start a risk-free review. For immediate assistance contact Joel Peterson or call (562) 249-6012