New IRS Memo: Supply Chain Disruption ERC Claims
https://www.irs.gov/pub/lanoa/am-2023-005.pdf Overview The recent Generic Legal Advice Memorandum (GLAM) released…
Any business which experienced a full or partial suspension of business operations or had a significant decline in gross receipts at any point throughout the eligible time frame may be entitled to a refundable tax credit. Century Concepts will be there from start to finish to ensure that you receive the entirety of said credit.
Payments made towards qualified salaries during the COVID-19 epidemic are eligible for a refundable tax credit under the Employee Retention Credit (ERC).
The COVID-19 pandemic has created significant challenges for employees, employers, and businesses, many of which continue to affect operations today. The Employee Retention Tax Credit (ERC), introduced as part of the CARES Act, aims to help businesses overcome these obstacles. This tax credit incentivizes companies to maintain their workforce by offering financial support for eligible wages and expenses.
Is your business eligible for this tax credit? In 2020, employers with fewer than 100 employees who paid qualified wages between March 12, 2020, and December 31, 2020, may be able to claim the credit. For 2021, eligible employers with fewer than 500 employees can potentially claim the credit for qualified wages paid between January 1, 2021, and September 30, 2021.
To explore the specifics of the Employee Retention Credit and determine your eligibility, we encourage you to request a free consultation with one of our tax credit experts.
Century Concepts offers comprehensive support throughout the entire Employee Retention Tax Credit (ERC) process, going above and beyond what most competitors provide. While many firms simply prepare the necessary forms for clients to receive their ERC, we understand that this is only half the battle. Business owners must also amend both their corporate and personal tax returns after obtaining the credit, as failure to do so can lead to an audit.
Our all-inclusive approach ensures that we not only prepare and file all required forms for the ERC, but also take care of amending and resubmitting your necessary tax returns on your behalf. This end-to-end service sets us apart from other firms and provides you with peace of mind throughout the entire process.
Century Concepts offers audit protection and comprehensive services to safeguard your business during the ERC filing process. Our dedicated team of experts guide you through each step, providing exceptional customer care and personalized attention. We possess the necessary qualifications to liaise with the IRS on your behalf, ensuring regular updates on the status of your ERC claim for a seamless, worry-free experience.
Further, we work closely with you to understand your unique situation, answer your inquiries, and provide clear, tailored guidance. Our goal is not only to simplify the process but also to maximize your potential benefits. By choosing Century Concepts, you gain more than just expert assistance with the ERC process; you acquire a trusted partner committed to helping your business navigate adversity successfully.
The Employee Retention Credit (ERC) is a refundable tax credit that was introduced under the CARES Act to help businesses financially impacted by the COVID-19 pandemic. It aims to encourage businesses to retain their employees by providing financial support for eligible wages and expenses.
The ERC helps businesses by offering a tax credit on qualified wages and expenses paid to employees, reducing the overall tax liability and improving cash flow. This financial relief enables businesses to maintain their workforce and better weather the economic challenges posed by the pandemic.
Eligible employers are those that either experienced a full or partial suspension of operations due to government orders related to COVID-19 or suffered a significant decline in gross receipts. The eligibility criteria differ slightly between 2020 and 2021.
For 2020, businesses with fewer than 100 employees who paid qualified wages between March 12, 2020, and December 31, 2020, can claim the credit. In 2021, eligible businesses with fewer than 500 employees can claim the credit for qualified wages paid between January 1, 2021, and September 30, 2021.
Qualified wages include salaries, hourly wages, and certain health plan expenses paid by the employer. The definition of qualified wages depends on the number of employees and the specific time period in question.
The calculation varies depending on the year. For 2020, the credit is equal to 50% of qualified wages, up to $10,000 per employee. For 2021, the credit is equal to 70% of qualified wages, up to $10,000 per employee per quarter.
Yes, but you cannot use the same wages for both programs. You must ensure that the wages used to calculate the ERC are not included in the payroll costs for PPP loan forgiveness.
To claim the ERC, you can report your total qualified wages and related health insurance costs on your amended quarterly employment tax return, typically using Form 941-X.
You claim the credit within the statute of limitations for filing a refund claim, which is generally three years from the date the original return was filed or two years from the date the tax was paid.
Yes, you can file an amended return using Form 941-X to claim the ERC for past quarters, provided you are within the statute of limitations for filing a refund claim.
You should maintain records of your gross receipts, qualified wages, and any government orders causing a full or partial suspension of operations. Detailed documentation is essential to substantiate your claim in case of an IRS audit.
The IRS website offers comprehensive guidance on the ERC, including FAQs, forms, and instructions. Additionally, consulting a tax professional or advisor can provide personalized assistance for your specific situation. Our Youtube channel also contains a plethora of resources that can help educate you on the ERC.
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