At Smart Accountants, we specialize in expertly preparing and reviewing your Employee Retention Tax Credit (ERTC) claims, providing comprehensive ERTC services across the United States.
The Employee Retention Tax Credit (ERTC) was introduced under the CARES Act to encourage businesses to retain employees during the pandemic by offering a refundable tax credit against employment taxes. Later legislation expanded eligibility, including businesses that received PPP loans, and extended the credit through September 30, 2021 (or December 31, 2021, for recovery start-ups).
If your business was impacted by the pandemic, you may qualify for the Employee Retention Tax Credit. Smart Accountants supports businesses throughout the entire ERTC process, from qualification and documentation to reconciliation and ensuring compliance with ever-evolving regulations.
As the ERTC remains a key opportunity to help businesses recover, we are committed to delivering high-quality, forward-thinking services that add value to your business. Our ERTC services cover:
• Qualification Analysis based on income reduction or government-mandated shutdowns
• Transaction Entry.
• Employee Retention Credit Calculation.
• Preparation and Review of Form 941-X.
In addition to our core services, we offer quality assurance to ensure efficient management of your tax ERTC claims. With timely solutions, we make it easy for you to manage your Employee Retention Tax Credits. As ERTC rules and regulations become increasingly complex, our team simplifies the process, so you can focus on growing your business.
Our experienced team has provided ERTC services to more than 10 businesses, delivering tailored solutions every time.
We have assisted with over 500 ERTC claims, helping businesses claim what they’re entitled to.
We stay on top of the latest ERTC updates, ensuring your claim meets current requirements.
As fraud and corruption become more prevalent globally, businesses need a solid governance structure. Our forensic services are seamlessly integrated with our broader advisory offering, ensuring a comprehensive approach to investigating fraud, bribery, corruption, and money laundering. We also provide fraud risk management and awareness programs.
Before taking on new projects, we conduct thorough research to ensure every claim is handled accurately.
The ERTC provides payroll tax credits to eligible employers who pay qualified wages to their employees. Employers can claim the credit against Social Security taxes under the CARES Act and the CAA. Under the ARPA, only Medicare taxes are eligible.
• Quarterly tax returns are used to claim the credit, reducing the amount employers need to pay in employment taxes.
• The credit was extended through June 30, 2021, under the CAA.
• The ARPA further extended the credit through the end of 2021.
•For 2020, the credit covered 50% of the wages of eligible employees, with a $10,000 wage limit per employee. The maximum credit per employee was $5,000.
• For 2021, the credit increased to 70% of qualified wages, with a $10,000 wage limit per employee per quarter.
•A government order limiting trade, travel, or gatherings due to COVID-19; or
•A significant reduction in gross receipts (less than 50% compared to the same quarter in 2019).
For 2021, eligibility includes:
A government order limiting trade or gatherings due to COVID-19; or
A significant decrease in gross receipts (less than 20% compared to the same quarter in 2019).
• For 2020, only salary and healthcare costs for employees not performing services are eligible for larger employers (over 100 employees). Smaller employers (under 100 employees) can claim all salary and healthcare costs paid, even if the employee continued working.
• For 2021, the definition of a small employer expanded to businesses with up to 500 employees.
For 2021, eligibility includes:
Yes! You can claim the ERTC even if you received a PPP loan. However, you must ensure that the same payroll costs are not used for both programs to avoid "double-dipping." The IRS provides guidelines for how to allocate costs between the ERTC and PPP loan forgiveness.
• Qualification Analysis based on income reduction or shutdowns
• Transaction Entry and Shutdown Documentation
• ERTC Calculation Assistance
• Preparation and Review of 941-X
Let us simplify the Employee Retention Tax Credit process for you! Schedule a call with our experts today!