Employee Retention Tax Credit
If you have not applied for the Employee Retention Tax Credit(ERTC), you still have time! If your business receipts dropped 50% in 2020 compared to 2019, or dropped just 20% in 2021 compared to 2019, you are likely entitled to a $5,000 per employee credit for 2020, and better yet, if your business receipts dropped just 20% in 2021 when comparing 2019, you are likely entitled to $7,000 per employee per quarter (for a total of $21,000 per employee for the year of 2021!).
Also, an often missed qualification to receive the $26,000 per eligible employee tax credit is the full or partial suspension of the operation of their trade or business during any calendar quarter because of governmental orders limiting commerce, travel, or group meetings due to COVID-19. As long as these actions are “more than simply nominal”, your business QUALIFIES for the ERTC!!
A simple example the IRS provides as “a partial suspension” is business is closed by a governmental order (restaurant, salon, doctors office, toy store etc). The business also maintains a website through which it continues to fulfill online purchases unaffected by the order. The business is considered to have been partially suspended due to the order requiring it to close its in-person store locations, and QUALIFIES for the ERTC.
myHRcounsel is offering its clients a no cost review of whether your business qualifies, and if it does, we will file all the tax returns for your business, for just a 15% contingent fee. To get started, simply complete the form below, and we will begin the process with you to earn up to $26,000 per eligible employee.
Do I Qualify?
- A situation where an employer is required to close their workplace for certain purposes but can remain open for other limited purposes – the perfect example – Restaurants! Restaurants could sell “take-out” food, but their dining room was closed, the IRS deems this a “partial suspension,” and the business QUALIFIES for the ERTC!
- Further: The following month, the order that closed down indoor dining is lifted, and indoor tables are required to be spaced six feet apart. Under the facts and circumstances, the government order restricting the spacing of tables limits its indoor dining capacity and has more than a nominal effect on its business operations. Therefore, during the period, its business operations continue to be partially suspended, and QUALIFIES for the ERTC!
- A retail business is closed by governmental order. The business also maintains a website through which it continues to fulfill online purchases unaffected by the order. The business is considered to have been partially suspended due to the order requiring it to close its in-person store locations and QUALIFIES for the ERTC!
- An employer that is ordered to reduce their operating hours is considered to have been partially suspended and QUALIFIES for the ERTC!
- A government order requires a business to deep clean the facility once every 24 hours. To comply with the order, the facility’s operating hours are cut by five hours a day for the deep cleaning. The business is considered to have been partially suspended – and QUALIFIES for the ERTC!
- An employer operates in multiple locations and is required to suspend their operations in some jurisdictions and not others. In general, an employer who operates in a consistent manner in all jurisdictions, despite not being required, would be considered to have partially suspended operation, and QUALIFIES for the ERTC!