Get Out of Jail Free Until 03/22/2024 EmployerIncentives attended an IRS seminar that was intended to establish a conduit between IRS agents and the clients of Tax Credit processing companies. The IRS is creating these relationships with Tax Credit filers/professionals so that they would distribute IRS communications to their clients and display that information conspicuously on their websites and in blogs. At EmployerIncentives, we are nothing if not chronic rule-followers, so here we are. The ERC program has been wrought with fraudulent actors since the get go, but things seemed to become untenable for the IRS sometime around the summer

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Navigating Employee Retention Credit: Avoiding Pitfalls for Your Business The IRS has announced “an immediate moratorium through at least the end of the year on processing new claims…to add more safeguards to prevent future abuse and protect businesses from predatory tactics.” While this moratorium is in place, companies that qualify for the Employee Retention Credit can still get ready to apply once the IRS lifts the moratorium. Now is a great time to do research and prepare. As businesses are still striving to recover from the economic impact of the COVID-19 pandemic, government initiatives such as the Employee Retention Credit

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ERTC (Employee Retention Tax Credit) Benefits for Home Healthcare Companies! If you’re the owner of a home health care company, you may be wondering if you qualify for the Employee Retention Tax Credit. First of all, this is a specific question to your business and you shouldn’t assume your qualification based on other companies similar to yours. Scenarios that prove qualifying to one business may not apply to your business, even if you work within the same industry. Qualification rules can be extremely specific and can differ based on your geography, clients, and office set up. It’s true that Home

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Small Business COVID Relief Act of 2022 legislation The following is a letter regarding the Small Business COVID Relief Act of 2022 legislation May 19, 2022 On Tuesday, Senate Majority Leader Chuck Schumer scheduled a vote on S. 4008, the “Small Business COVID Relief Act of 2022,” adding $40 billion to the Restaurant Revitalization Fund and $8 billion for several small business groups in financial stress. Nearly fifty Democrats will vote for the bill but sixty votes are required. Thus, our lobbying is aimed at persuading fifteen or so Republican senators to support the measure. Under Senator Ben Cardin’s (D-MD)

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Employee Retention Credit 2022: Essential Qualifications The Employee Retention Credit (ERC) helped businesses stay open when the pandemic started. In 2020, the White House implemented the CARES Act. Since then, business owners have been taking advantage of this new legislation to keep the workforce in their jobs.  If you’re one of the business owners who have not collected this refund, keep reading to learn more. Thousands of business owners collected Payroll Protection Program Loans (PPP Loans) at the start of the pandemic.  This forgivable loan helped struggling businesses keep their employees on the payroll.  It was a necessary and very

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 Employee Retention Tax Credit Case Study The Employee Retention Tax Credit can be a very useful rebuilding tool for many of the hotels and restaurants in the US. What follows is a typical case study of how the credit works. The Bread Basket is a family style restaurant that has two locations.  Each location is roughly the same size, and has family style seating able to accommodate 250 guests.  The staff of each restaurant consists of a mix of cooks, wait staff, hosts, and managers, totaling about 14 people per day.  They serve a wide variety of home-style food in

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Employee Retention Tax Credit Eligibility Category Recovery Startup Businesses are eligible for the ERC for 3rd and 4th quarter 2021 The American Rescue Plan Act of 2021 passed by Congress in March of 2021 expanded the Employee Retention tax Credit by introducing a new eligible category of employer – The Recovery Startup Business. A Recovery Startup Business is defined as a business that started operating after February 20, 2020 and has “average annualized receipts” of less than $1,000,000. Recovery Startup Businesses are automatically eligible for the Employee Retention Credit in the third and fourth quarters of 2021. The American Rescue

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Tax breaks for businesses

The Employee Retention Tax Credit Were you required to limit your business due to Covid-19? If your business was affected during 2020 or 2021, you may be entitled to apply for the Employee Retention Tax Credit. This is a large refundable tax credit provided by the federal government to give relief to fully or partially locked down businesses that kept employees on the payroll.   There are eligibility rules limiting the number of businesses that can participate in these programs, including if your business was forced to close, fully or partially, by order of a government mandate. Did the state

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Employee Retention Credits Are Being Cancelled Finally, after the tragic year that 2020 was, things were starting to look up again. Businesses were reopening and hiring people. The economy had finally started to show signs of recovery and strength after a year of stagnation and recession. The summer of 2021 was the start of making up for that lost year. The Roaring 20s were beginning at last. One of the programs that Congress passed to help with the recovery was the Employee Retention Credit. A valuable, albeit confusing, tool we could use to rebuild our businesses. EmployerIncentives has helped businesses

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You could be entitled to tax credits The CARES Act and Consolidated Appropriations Act, 2021 allows eligible businesses to claim an Employee Retention Credit (ERC) to encourage businesses to keep employees on their payroll. Subsequent legislation, like the Taxpayer Certainty and Disaster Tax Relief Act of 2020, amends and extends the benefits of the ERC (along with the availability of advance payments), has provided more opportunity for businesses to capitalize on the relief funding being provided. The original CARES Act was written to reimburse 50% of the first $10k in employee wages and qualified health plan expenses that were earned

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