Tip: How does an Eligible Employer claim the Employee Retention Credit for qualified wages?

The Employee Retention Tax Credit is a program set up under the Cares Act in response to the Pandemic. The credit is a reward to businesses that stayed open during the pandemic and kept our economy going. The credit repays a portion of the wages paid by employers financially impacted by the Pandemic. The IRS will send your business a check for the amount you qualify to receive. You will not have to pay this back.

How can Eligible Employers apply?

  • Eligible employers will report their total qualified wages for purposes of the Employee Retention Credit for each calendar quarter on their federal employment tax returns, usually Form 941, Employer's Quarterly Federal Tax Return.

  • Employers must also report any qualified sick leave and qualified family leave wages for which they are entitled to a credit under FFCRA on Form 941.

  • In anticipation of receiving the Employee Retention Credit, Eligible Employers can fund qualified wages by: (1) accessing federal employment taxes, including withheld taxes that are required to be deposited with the IRS, and (2) requesting an advance of the credit from the IRS for the amount of the credit that is not funded by accessing the federal employment tax deposits, by filing Form 7200, Advance Payment of Employer Credits Due to COVID-19.

Are tax-exempt employers eligible for the Employee Retention Credit?

Organizations described in section 501(c) of the Internal Revenue Code (the “Code”), and exempt from tax under section 501(a) of the Code, may be Eligible Employers for purposes of the Employee Retention Credit if they are employers that otherwise meet the requirements to be eligible for the credit.

Is the Employee Retention Credit available to employers of any size?

Yes.  The number of employees an employer has does not affect whether it is an Eligible Employer that may claim the credit.

Source: www.irs.gov

At The Jones Law Firm, our team is ready to help you quickly conduct an in-depth analysis to fully understand the Employee Retention Tax Credit (ERC) funds you might qualify for. We can guide and help you investigate your claim of eligibility, determine your potential tax credit, and then file the claim for your refundable ERC tax credit.

If you’re unsure that you’ve claimed eligible funds or that your accountant conducted the filing correctly, then don’t hesitate to reach out. You could be leaving hundreds of thousands on the table, literally.

Please click the link below and sign the Employee Retention Credit Representation Agreement:

ERTC Representation Agreement

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