The Employee Retention Credit: How significant is the credit?
So far I have helped restaurants and small business owners obtain the Employee Retention Credit and you probably want to know how much can I get. The answer is it depends, but it can be significant and even game changing money. I have mostly done restaurants which are getting on average about $300,000 per restaurant owned. There are a lot of variables that will determine the amount but as you can see it can be significant.
I also helped a smaller non restaurant business get the ERC and it was a business with eight employees that were not owners or relatives of owners and the business qualified for a credit of a little more than $25,000. It is not as big but perhaps just as significant to this small business.
As you can see the Employee Retention Credit could be significant for your business. But also let me clarify that not all businesses qualify for the credit. One of my biggest clients, with an annual payroll that dwarfs the restaurant clients I have helped, does not qualify for the credit. Unfortunately or fortunately they were not affected by a government order that restricted their business during the COVID-19 pandemic and they did not experience a reduction in revenue from 2019 to 2020 or 2021. Other businesses that I have talked to did not qualify because they are basically a mom and pop shop and their payroll did not include enough qualified wages because of the rules regarding owners and their family members.
How significant could the Employee Retention Credit be for your business? That depends on various factors like your payroll, do you qualify, and various other factors. To find out more use my email address below to contact me to arrange an appointment to discuss your situation.
How Did I Get Into This?
My first Employee Retention Credit client asked me about the ERC and insisted I help him because he thought it could mean a lot of money for him and his business and he was right. But at first they did not qualify because they had taken out a PPP loan. But then the legislation changed and the client qualified even though they had PPP loans. I still did not want to do it because I don't do payroll and the ERC is really complicated. His payroll person did not want to do it either so he continued to pester me about it until I relented but I told him he would pay me handsomely. It was complicated and it required some complex calculations. Additionally there are some complex issues surrounding the qualifications and also the income tax issues that I have to make sure the business owners understand.
I relented to my client and he now has his money, over a quarter of a million dollars, plus interest and he has told others about it. Not surprisingly most CPAs don't want to touch this. I did not want to either, because it is enough just to keep up with the income tax code and the changes recently have been significant. It has been so significant for the business that have engaged me in this work that I am getting out of the income tax preparation business and just focusing on the Employee Retention Credit.
Keeping Up With The Changing Issues
Of course this, The Employee Retention Credit, is a government credit for which the requirements and related issues are continuing to evolve. Like I have done with income taxes I keep with up changes related to this credit and stay in the loop with other professionals involved in this area of expertise to make sure I can provide top quality service to my clients.
I can help you to apply for the credits and I will also work with your CPA to help them understand the income tax issues and help them to benefit from my knowledge and experience with these issues.
If you are a CPA with clients that may qualify but you don't want to mess with the ERC then you should use my contact information below to setup an appointment. The only work I will take on is the Employee Retention Credit work.
This credit can be a substantial game changer for businesses. Restaurants especially need the help this credit can provide. If you would like help in obtaining the credit why not ask someone who both has done it and also understands these various issues. For my assistance to help you claim the Employee Retention Tax Credit use my email address below to contact me and make an appointment to discuss your situation.
Be careful when reading about tax law and its application, including my articles, because the wording and definitions are such a challenge and are influenced by writers perspective, specifically his own clients situations that he is mindful of and other situations the writer is not thinking of. The point is talk to your CPA about your situation and circumstances and don't rely on or make conclusions based on articles you read, including articles form irs.gov, because concepts and definitions are not very clear, and of course, they are subject to change. Now is the time to be having discussions about your situation and developing strategies for you and your business. Again, contact me using my information above to discuss your situation. I help business owners all over the U.S. and in foreign countries with their tax returns