Employee Retention Tax Credit

Employee Retention Tax Credit (ERTC) for Employers - Coomber Law

Welcome to our comprehensive guide on the Employee Retention Tax Credit (ERTC), tailored specifically for employers. If you're an employer seeking to understand your options for ERTC, facing an IRS audit, or wondering how to qualify, you've come to the right place. Our guide is designed to demystify ERTC and help you make informed decisions for your business with the assistance of Coomber Law.

Employers' Options for ERTC

The Employee Retention Tax Credit provides eligible employers with a valuable tax incentive to retain and pay employees during challenging economic times, such as the COVID-19 pandemic. As an employer, you have several options regarding ERTC, including:

Determining Eligibility: Discover if your business qualifies for ERTC by assessing factors like the size of your workforce, changes in revenue, and government orders affecting your operations.
Claiming ERTC: Learn how to calculate and claim the tax credit, which can offset a significant portion of your payroll taxes and provide much-needed financial relief.
Reviewing Tax Benefits: Understand the financial benefits ERTC offers, including reducing your tax liability and preserving your business's cash flow.
Seeking Expert Guidance: Consider consulting with ERTC experts from Coomber Law to maximize the credit's potential benefits and ensure compliance with IRS regulations.

Are You Facing an Audit from the IRS?

If your business is currently facing an IRS audit related to ERTC or other tax matters, Coomber Law is here to assist you. Our team of experienced professionals specializes in IRS audit representation, ensuring that you have the support and advocacy needed to navigate the audit process successfully.

How to Qualify for ERTC

Qualifying for ERTC involves meeting specific criteria set forth by the IRS. In our comprehensive guide, we'll walk you through the qualification process, including:

Eligibility Requirements: Understand the key factors that determine whether your business qualifies for ERTC, including the size of your workforce and revenue decline.
Calculating the Credit: Learn how to calculate the amount of ERTC your business is eligible to claim, ensuring you receive the maximum benefit.
Claiming the Credit: Discover the necessary steps to claim ERTC, including reporting requirements and documentation.
Compliance: Stay up-to-date with IRS guidelines and compliance requirements to avoid potential issues in the future.

Our Guide to Help You - Coomber Law

Navigating the complexities of ERTC and IRS audits can be challenging. Our guide is here, with the support of Coomber Law, to provide you with clear, actionable information to help you make informed decisions and successfully navigate the ERTC landscape. Whether you're exploring ERTC options, facing an audit, or seeking guidance on qualification, Coomber Law is committed to helping you achieve the best possible outcomes for your business.

For personalized assistance and expert guidance on ERTC and IRS matters, contact Coomber Law today to schedule a consultation. We're here to support you and your business every step of the way.

Common Questions: Get Answers

What is it?

The Employee Retention Tax Credit program (ERTC) is a federal program created by Congress in the CARES Act which provides qualifying business owners tax refunds of up to $26,000 per W-2 employee. Most businesses, even essential businesses, qualify under the "Government Order" test, although there is also a "Gross Receipts" test.

Which Size of Businesses Can Qualify?

Employers that had 500 or fewer full-time W-2 employees in 2019 can qualify for the 2021 tax credits. Employers that had 100 or fewer full-time W-2 employees in 2019 can qualify for both 2020 and 2021 tax credits. Employers with over 500 full-time W-2 employees in 2019 may be eligible for some limited credits.

How Do I Qualify?

There are two tests for qualification purposes: The Gross Receipts test and the Government Orders test. The Gross Receipts test is met when the business suffered a decline in gross revenue of 50% in 2020 from the same quarter of 2019 and a decline of 20% in 2021 from the same quarter of 2019. The Government Orders test is met when a business suffered a full or partial suspension of its operations as a result of a “government” order (federal, state, local, or health department) limiting commerce, travel, or group meetings. Any disruption of the business operations due to a government order qualifies the business for tax credits, whether or not it was deemed an essential business. There is no revenue component to the Government Orders test.

How much Can I Receive?

A qualifying business can receive up to $26,000 per employee; $5,000 for 2020 and $21,000 for 2021*. “Wages” include employer healthcare contributions.

*2020: 50% of the first $10,000 in wages for each employee.
*2021: 70% of the first $10,000 in wages for quarters 1, 2, and 3.

Thank You!

We've copied your review, after you click 'Publish' please paste your review by selecting 'ctrl' + 'v' into the review comments section.

Publish to Social

Employee Retention Tax Credit