In the wake of the global pandemic, numerous financial support schemes have emerged to aid struggling businesses…Among them, the Employee Retention Tax Credit (ERTC). This federal initiative is designed to provide economic relief to US businesses…But what exactly is it, and importantly, can you claim Employee Retention Credit in 2024?
The ERTC is a refundable tax credit against certain employment taxes. The intention behind it is to motivate employers to keep their staff on payroll during times of financial uncertainty or hardship, such as during the Covid-19 pandemic. Yet, its many intricacies can often make understanding the process seem daunting…This is where understanding and leveraging programs like the ERTC becomes critical.
How Confident Are You In Your ERTC Eligibility?
Watch Our Video Explaining the Fraud We’ve Seen From National ERC Promoters
Who Can Claim Employee Retention Tax Credits?
To qualify for the Employee Retention Tax Credit, you need to meet a few requirements…The eligibility extends to almost every type of business and non-profit organization in the US that had W-2 employees on payroll during the pandemic. If you paid payroll taxes for these employees, you’re likely to be eligible. But that’s just the broad strokes…Understanding these intricacies and how they apply to your unique situation is paramount, as you’re ultimately responsible for these tax credit claims.
While there may be many so-called “experts” out there offering advice on ERTC claims, getting a firm grasp of the fundamentals yourself will empower you to make informed decisions… Remember, knowledge is power when it comes to understanding and leveraging programs like the ERTC.
How Do You Qualify For ERTC?
However, mere eligibility isn’t enough…Your business must meet specific qualifying criteria to claim these refundable tax credits. In 2020, businesses could claim up to $5,000 per employee, and in 2021, this increased to up to $7,000 per employee in each qualifying quarter.
Also read: Employee Retention Credit 2020 vs 2021
These credit amounts are calculated based on a percentage of qualifying wages that you paid during “qualifying dates”… However, it’s important to remember that there is a lot of nuance to these rules and regulations, which might seem overwhelming at first glance.
However, there’s a critical caveat here – the issue of “double-dipping” with PPP. You cannot claim tax credits on wages paid for with PPP loans that were later forgiven… Navigating these subtleties can seem like traversing a minefield, but with the right guidance and understanding, it becomes manageable.
Remember, staying informed about ERTC is not just about understanding the basics… It’s also about knowing how these rules apply to your specific situation, and making strategic decisions accordingly. This is where professional assistance like JWC ERTC Advisory can provide valuable insights and support.
The Future of ERTC
Now, let’s turn our attention to 2024. As it stands now, you might be wondering – can you claim Employee Retention Credit in 2024? To answer this crucial question, it’s essential to stay informed about any changes in tax law and IRS guidelines…Updates may come directly from authoritative sources such as IRS.gov or Treasury.gov or credible news outlets like New York Times or Wall Street Journal.
Navigating Misinformation and Deception
However, with an abundance of information available at our fingertips, misinformation inevitably seeps through…This is where so-called “experts” might take advantage. Therefore, it’s crucial to discern between factual advice and deceptive ploys when it comes to ERTC.
Beware of ERTC Scams
Unfortunately, the advent of ERTC has given rise to a slew of scams and fraudulent schemes…The IRS has recently been cracking down on ERC promoters who have been engaging in illegal practices. To avoid falling prey to such scams, rely only on verified sources for your information.
Seeking Professional Advice
With all these complexities and potential pitfalls, you might feel overwhelmed about handling your ERTC claims…But don’t despair. Here’s where the JWC ERTC Advisory can step in.
Why Choose JWC ERTC Advisory?
With a team of certified CPAs at your disposal, the JWC ERTC Advisory offers in-depth knowledge of ERTC and can help navigate through the process…We prioritize ethical practice and strive to serve our clients efficiently. Plus, if you’ve previously filed for ERTC but are skeptical about your eligibility, we offer an independent eligibility review.
In conclusion, understanding and claiming your ERTC need not be a daunting task…Stay informed, vigilant against misinformation, and reach out to reliable experts when needed. After all, knowledge is power.