In the wake of the coronavirus pandemic, San Diego, CA businesses are continuing to navigate the path to financial recovery. Amidst these challenges, it is crucial for business owners to explore available government resources. One government program that was designed specifically for this purpose is the Employee Retention Tax Credit, also known as ERTC or ERC.
If you have a business in San Diego, Los Angeles, San Francisco or another California city and have not yet applied for ERC, this article will serve as a guide on how to apply for and secure the Employee Retention Tax Credit, even if you received PPP funds.
The Employee Retention Tax Credit, created under the CARES Act and subsequent legislation, is a program that helps businesses that struggled during the pandemic but managed to retain employees rather than lay them off.
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.
To qualify and receive the ERTC tax credit, San Diego businesses must meet specific eligibility criteria. The chart below outlines this criteria:
All businesses with 500 employees or less can apply for the Employee Retention Credit. And, businesses that received a Payroll Protection Plan (PPP) loan may also qualify for the tax credit. In order to apply for ERTC, San Diego businesses can follow these steps:
The Employee Retention Credit is a federal program that can help San Diego businesses recover from the financial strains of the pandemic. Every eligible business in California should apply for ERC even if a PPP loan was issued.
Due to the fact that the laws are complex and the application process can be tricky, it is recommended that businesses utilize the services of an experienced ERC specialist. An ERC specialist can provide guidance and will know in just a matter of minutes if the business qualifies. Businesses that receive the tax credit can use the funds to help support their financial recovery from the pandemic.
If you have a business in San Diego and haven’t applied for the Employee Retention Credit as of yet, it’s not too late. If you have questions or would like to read reviews on some of the top ERC specialists and advisors, you can find that information on ERCTaxCreditReviews.com. Or, call us at 919-609-2714 and we’d be happy to help.
As Phoenix, Arizona businesses navigate the economic aftermath of the COVID-19 pandemic, it is crucial for business owners to explore available resources and financial relief programs. Among these programs, the Employee Retention Tax Credit, also known as ERTC or simply ERC, offers eligible businesses an opportunity to receive a tax credit for periods in which their business was negatively affected by the pandemic. Here are some steps for Phoenix businesses to apply for and secure the Employee Retention Credit.
Similar to the Payroll Protection Program or PPP, the ERC is a federal program designed to help businesses that suffered but managed to maintain their workforce during times of economic hardship. This credit 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.
While PPP was a federal loan that was required to be used strictly for payroll needs in order for it to be forgiven, the funds disbursed for the ERC tax credit are not earmarked. This means that a business can use the funds for whatever business purpose it sees fit. What’s also great about ERTC is that businesses can apply for ERC even if they received PPP. All businesses in Phoenix that think they may qualify for the Employee Retention Credit are encouraged to apply.
The amended criteria from the IRS states that for Arizona businesses to qualify for ERC they must have:
Read more about the ERC eligibility criteria for businesses.
To apply for the Employee Retention Tax Credit, Phoenix businesses should follow these essential steps:
The Employee Retention Credit provides Phoenix businesses with an opportunity to mitigate some of the financial burdens that resulted from the pandemic. By understanding the ERTC eligibility criteria and following the application process diligently, businesses can leverage this program and receive a tax credit. The tax credit funds can be used to support their operations and contribute to their business’s post-pandemic recovery. Unlike PPP, funds can be used for anything. And even if a business received PPP, they may be eligible for ERC.
As stated above, all businesses should seek the advice of an ERC specialist or accounting firm. An experienced professional will help to ensure that the 941 is correctly completed and filed with the IRS. Remember to maintain thorough records and seek guidance from tax professionals or accountants to ensure compliance. With the ERTC, Phoenix businesses can recover from the hardships of the past and pave the way for a prosperous future.
If you have a business in Phoenix and have questions about applying for the Employee Retention Credit, our ERC FAQs may be able to help. Or, reach out to us directly at 919-609-2714. We’d be happy to help!
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