ambit-kpo/ertc-employee-retention-tax-credit.php at main · piyushpaliwal/ambit-kpo · GitHub

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<!DOCTYPE html>
<html lang="en">
<?php $h1keyword = "Employee Retention Tax Credit (ERTC) Service"; ?>
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                    <h2 class="m-t-10"> Employee Retention Tax Credit (ERTC) Service</h2>
                    <p>The Employee Retention Credit is a refundable tax credit against certain employment taxes equal
                        to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and
                        before September 30, 2021.

                    </p>
                    <h3>Who Is Eligible for Employee Retention Tax Credit?</h3>
                    <p>ERTC qualification for any employer is determined by one of the following criteria — and one of
                        these factors must apply in the calendar quarter the employer wishes to utilize the credit:</p>
                    <p>The business must have had their operations fully or partially suspended, or had to reduce
                        business hours due to orders from a governmental authority.</p>
                    <p>- Suffer a significant decline in quarterly gross revenue as measured against 2019. <br>
                        - 50% decline for 2020 compared to 2019 <br>
                        - 20% decline for 2021 compared to 2019 <br>
                    </p>

                    <p>Recovery Startup Business – 3rd and 4th quarter 2021 only. <br>

                        - Have begun carrying on trade or business after Feb. 15, 2020 <br>
                        - Have annual gross receipts that do not exceed $1 million <br>
                        - Not be eligible for the ERTC under the other two categories <br>
                    </p>

                </div>
                <h3>What Employers Qualify for the Employee Retention Credit? </h3>
                <p>Most employers, including colleges, universities, hospitals and 501(c) organizations following the
                    enactment of the American Rescue Plan Act, could qualify for the credit.
                </p>
                <p>Qualification is determined by one of two factors for eligible employers — and one of these factors
                    must apply in the calendar quarter the employer wishes to utilize the credit:
                </p>
                <p><strong>
                        A trade or business that was fully or partially suspended or had to reduce business hours due to
                        a government order. The credit applies only for the portion of the quarter the business is
                        suspended, not the entire quarter.
                    </strong></p>
                <p>Some businesses, based on IRS guidance, generally do not meet this factor test and would not qualify.
                </p>
                <p>- Those considered essential, unless they have supply of critical material/goods disrupted in manner
                    that affects their ability to continue to operate.
                    - Businesses shuttered but able to continue their operations largely intact through telework.
                    However, any of these businesses still may qualify for the credit with the second factor test.

                </p>

                <p> <strong>An employer that has a significant decline in gross receipts.</strong></p>
                <p>A significant decline in gross receipts is calculated by determining the first calendar quarter in
                    2020 (if any) in which an employer’s gross receipts are less than 50 percent of its gross receipts
                    for the same calendar quarter in 2019. If the gross receipts decline to that extent, the employer
                    also must later determine if there is a later calendar quarter in 2020 in which the employer’s 2020
                    quarterly gross receipts are greater than 80 percent of its gross receipts for the same calendar
                    quarter in 2019. If so, the significant decline in gross receipts ends with the first calendar
                    quarter that follows the first calendar quarter in which the employer’s 2020 quarterly gross
                    receipts are greater than 80 percent of its gross receipts for the same calendar quarter in 2019, or
                    with the first calendar quarter of 2021.</p>

                <p>The IRS released Revenue Procedure 2021-33 in Aug. 2021 that provides a safe harbor under which an
                    employer may exclude the amount of the forgiveness of a PPP loan and the amount of a Shuttered Venue
                    Operators Grant or a Restaurant Revitalization Fund grant from the definition of gross
                    receipts solely for the purpose of determining eligibility to claim the ERTC. Employers must apply
                    the safe harbor consistently across all entities.</p>

                <h3>What is the Amount of ERTC?</h3>
                <p>ERTC is restricted to 50% of the Qualified wages (not exceeding $ 10,000 per employee) for the period
                    March 13, 2020 to December 31, 2020 subject to a maximum of $5000 per employee for 2020.</p>

                <p>ERTC is restricted to 70% of the Qualified wages (not exceeding $ 10,000 per employee per quarter)
                    for the period January 1, 2021 to September 30, 2021 subject to a maximum of $7000 per employee per
                    quarter for 2021.</p>

                <h4>What is the Maximum amount that can be claimed on ERTC?</h4>

                <p>There is no upper ceiling on the client however the same is restricted to $ 26000 per employee
                    (maximum) combined for 2020 & 2021.</p>

                <h4>What if I have availed PPP and got forgiveness for the same?</h4>
                <p>You are still eligible to claim ERTC however the wages claimed for PPP forgiveness shall not be
                    eligible for ERTC.</p>

                <h4>How do I know whether I am eligible or not?</h4>

                <p>We run a basic eligibility test based on the Gross Receipts for 2019, 2020 & 2021 and whether the
                    business is eligible or not is determined.
                    <br>
                    (Note: Eligibility Test is only a pre-determined criteria as per IRS guidelines however final
                    eligibility and amount can only be determined after detailed analysis)
                </p>


                <h4>Do I have to repay the ERC Credit?</h4>
                <p>No, the ERC is a refundable tax credit</p>


                <h4>Do as Owner my Wages or the wages of family members I employ qualify?</h4>
                <p>
                    Maybe. Wages of owners who have majority ownership, defined as over 50%, do not qualify, nor do the
                    W2 wages of any immediate family members of the owner. In the case an owner has less than 50%
                    ownership, their W2 wages qualify, as do the W2 wages paid to immediate family members.
                </p>

                <h3>Reduce Risk by Letting Us Work Through the Guidelines with You</h3>
                <p>
                    We have successfully claimed the ERTC for numerous firms, obtaining millions of dollars in tax
                    credits. We can help you find out if you qualify and then manage the tax credit process for you. Let
                    us provide a complimentary analysis of your organization to determine if the ERTC credits can be
                    claimed. Our comprehensive ERTC study includes:
                </p>
                <p>- Determination if the employer qualifies, and if so, for which fiscal quarters. <br>
                    - Determination of which employee wages qualify; <br>
                    - Detailed summary and supporting evidence of the client’s business to identify partially or fully
                    suspended conditions due to COVID-related government orders. <br>
                    - Preparation of documentation supporting ERTC eligibility claims, including financial review of
                    2019, 2020 & 2021 gross income receipts to determine if the business experienced the significant
                    decline in revenue that meets the ERTC requirements.  <br>
                    - Determination of the fiscal quarters that qualify for the ERTC, which includes analyzing whether
                    the business was shut down, in full or in part, by an order issued by a government agency, and/or,
                    by reviewing Form 941s, and employer’s quarterly federal tax return. <br>
                    - Qualifying wage computations take into account the use of PPP funds for payment of employee wages,
                    in order to optimize the number of wages qualifying for the employee retention tax credit (ERTC)
                    while preserving PPP forgiveness. <br>
                    - Preparation of reconciled data for IRS Form 941-X. <br>
                    - Completion of all federal tax forms and additional supporting documentation, as required. <br>
                    - Removing unqualified employees, such as certain business owners. <br>
                    - Reviewing and adding allocable qualified health plan expenses. <br>
                    - Checking to see if the business qualifies for any additional tax credits in addition to the ERTC.
                    <br>
                    - Providing detailed filing instructions as well as audit support if the project is challenged by
                    the IRS.
                </p>


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