Employee Retention Tax Credit Assistance

IRS places hold on ERC claims

On September 14, 2023, IRS Commissioner, Danny Werfel, ordered an immediate moratorium on processing new Employee Retention Credit (ERC) claims. The moratorium is expected to last until at least December 31, 2023. The pause in the processing of new claims comes after significant concerns related to aggressive and predatory marketing efforts by so called “ERC Mills.” To find out more, read the IRS News Release.

If you are in the midst of the ERC claim process, click here for our recommendations on how to best proceed. If you have questions regarding this update, feel free to contact us.

Getting You the Credit You Deserve

The Employee Retention Tax Credit (ERTC), also known as the Employee Retention Credit (ERC), is a refundable tax credit provided to businesses and nonprofits that have been impacted by the COVID-19 pandemic and had to either fully or partially suspend operations or experienced a significant decline in gross receipts. The ERC was introduced as part of the CARES Act in 2020 and has since been extended and expanded by subsequent legislation.

How is the ERC calculated?

The ERC is calculated based on the wages paid to eligible employees during the relevant payroll tax period. The credit amount is equal to 50% of qualified wages paid to eligible employees, up to a maximum credit of $5,000 per employee in 2020, and is equal to 70% of qualified wages paid, up to $7,000 per eligible employee for the first three quarters in 2021.

Who is eligible?

To be eligible for the ERC, a business must meet certain criteria, such as experiencing a significant decline in gross receipts or a full or partial suspension of operations due to government orders related to the pandemic. The business must also retain eligible employees during the relevant payroll tax period.

What is the benefit of ERC Assistance services?

The ERC is a valuable tax credit that can help businesses offset the financial impacts of the pandemic, and can provide a much-needed boost to their cash flow. However, it is important to ensure that businesses comply with all eligibility requirements and documentation requirements to avoid potential penalties or worse. Thompson Greenspon can help you navigate these requirements and ensure that your ERC is executed properly.

We Provide the Following ERTC Services:

Eligibility Analysis: We can help you analyze your business's eligibility for the ERC based on your specific circumstances, such as the impact of the pandemic on your operations and revenue.

Documentation: Assistance with collecting and organizing the necessary documentation to support your ERC claim. This can include payroll records, financial statements, tax returns, and other relevant documents.

Calculation: We can help determine the ERC amount based on the relevant payroll tax periods.

Second Opinion: If you’ve already received an ERC calculation from an outside provider, we can provide an additional assessment to confirm that your calculation is accurate.

Filing: Our firm can help you file for the ERC claim, ensuring that all required forms and documentation are submitted correctly and on time.

Audit Defense: In the event of an IRS ERC audit, we can provide representation and assistance in responding to IRS inquiries and examinations and providing necessary documentation.