Employee Retention Tax Credit: A Roadmap for New York Businesses on Applying for ERC
Amid the challenging aftermath of the COVID-19 pandemic, businesses in New York state are steadfastly charting their course to economic recovery. In this pursuit, it becomes imperative for business proprietors to delve into the wealth of government resources available. Similar to the Payroll Protection Program (PPP), another resource is called the Employee Retention Tax Credit.
ERTC, or ERC, stands out as a strategic tool designed to bolster businesses that faced adversities during the pandemic while retaining their valuable workforce. This article is intended to serve as a guide tailored for New York businesses on how to apply for the Employee Retention Credit.
Understanding the Employee Retention Tax Credit
Embedded within the corridors of the CARES Act and subsequent legislative initiatives, the Employee Retention Tax Credit offers eligible employers a lifeline in the form of a tax credit. This tax credit is intended to deliver financial aid to businesses that experienced a substantial decline in business activity or had a partial or full suspension of operations during the pandemic.
Eligibility Criteria for the ERC
Qualifying for the Employee Retention Credit mandates adherence to specific ERC eligibility criteria. While not all businesses will qualify, it is worth investigating. And even if businesses received the PPP, they may still be eligible for ERC. The criteria for New York businesses is as follows in the chart:
Applying for the ERTC
In order to successfully navigate the path to applying for the Employee Retention Tax Credit, New York businesses can undertake the following strategic steps:
1. Expert consultation is suggested before a business takes the steps to apply for ERC. Due to the complexity of this federal program, seasoned ERC advisors or tax accountants are the best professionals for working with intricacies of the program.
2. Professionals can help with eligibility assessment and credit calculation. Collaborate closely with your chosen expert to ascertain your business’s eligibility and to meticulously compute the maximum credit based on qualified wages. The nuances of credit calculation can differ between 2020 and 2021, underscoring the indispensability of professional guidance.
3. Accurately file or revise the IRS Form 941 (the Employer’s Quarterly Federal Tax Return). This process involves furnishing all pertinent details, including comprehensive information about qualified wages and the number of eligible employees.
4. Maintain thorough documentation. This documentation may include payroll records, financial statements, and any substantiating evidence attesting to the decline in the business’s gross receipts.
Conclusion
All eligible New York businesses should apply for ERC even if the business received the PPP. Before doing so, a comprehensive understanding of the eligibility criteria is critical. The consultation of an ERC specialist or accountant with ERC experience is suggested in order to ensure compliance and to maximize the business’s potential tax credit. After applying for and receiving the ERC, New York businesses will have the ability to continue their post-pandemic journey toward economic resurgence and prosperity.
If you have additional questions about the program, our ERC FAQs may be of help to you. Call us today at 919-609-2714 to speak with us directly or for assistance on how to apply for the Employee Retention Credit for your New York Business.
As businesses in cities like Miami, Tampa, and Orlando continue their journey towards recovery after the challenges posed by the COVID-19 pandemic, it is essential for business owners to explore available government resources. One of these resources is the Employee Retention Tax Credit. ERTC (also known as ERC).
ERC is a program similar to the Payroll Protection Program (PPP) that was introduced by the government to provide aid to qualified businesses that were crippled by the pandemic.
This article provides information for Florida businesses on how to apply for ERC and maximize the benefits of the Employee Retention Credit. It should also answer most of the ERC FAQs.
Understanding the Employee Retention Tax Credit (ERTC)
The Employee Retention Tax Credit was created under the CARES Act during the COVID outbreak to help businesses that were suffering from financial hardships due to government orders requiring business shutdowns.
While PPP provided a forgivable loan to businesses that retained employees during the pandemic, the ERC program offers eligible businesses with funds as tax credit for specific periods during the pandemic. The ERC is offered as a tax credit that allows eligible employers to claim a portion of wages paid to employees who were not working due to a significant decline in business activity or a full or partial suspension of operations.
Eligibility Criteria for the ERTC
Certain criteria must be met in order for businesses in Florida to qualify for the Employee Retention Tax Credit. While the rules may vary, the general requirements are listed here:
How to Apply for the ERC
Florida businesses that have not yet applied for ERC can still do so. And, businesses can apply and qualify to receive the tax credit even if they received the PPP. Here are the essential steps to apply:
- Due to the high complexity of the ERTC program, it is advised that businesses consult with an ERC specialist or tax professional that has experience with ERC. These professional insights will be invaluable throughout the process.
- Work with your ERC specialist or tax professional to assess eligibility and calculate the credit amount. Calculating the credit amount will vary between 2020 and 2021, as the rules differ for quarters in question.
- You will need to complete or modify the IRS Form 941 (the Employer’s Quarterly Federal Tax Return). The guidance of your tax professional will ensure this is handled properly.
- It is important to maintain meticulous documentation to substantiate your eligibility for the ERTC. These documents may include payroll records, financial statements, and any relevant evidence of the decline in gross receipts or government-issued orders.
Conclusion
Every business in Florida should determine if they are eligible to apply for the Employee Retention Tax Credit. Businesses can qualify even if they already received funds from the Payroll Protection Program. The use of an ERC specialist or experienced ERC tax advisor can help with the qualification and application process.
Unlike the PPP where funds had to be used for specific purposes, funds from the ERC tax credit can be used for any purpose. The Employee Retention Credit will help businesses unlock financial relief and start a path to a stronger future.
If you have additional questions, the ERC FAQs on ERCTaxCreditReviews.com may help to clear things up. You may also call us at 919-609-2714. We’d be happy to help answer questions or assist with the application process.
Have questions or comments?
Call us at 919-609-2714 or contact us here.
