Claim the ERTC for Your Business in 2022 for Previous Years
The Employee Retention Tax Credit (also called the Employee Retention Credit) is a valuable tool for businesses that ad been impacted by the COVID-19 pandemic. You can legally and ethically claim the ERTC with the correct expert tax credit CPAs, who are licensed in the United States even if you were told that you didn’t qualify based on the original factor of gross revenue declines.
If you are a business owner and think you may be eligible for the ERTC, it is important to consult with a tax strategy professional to ensure that you are following all of the necessary guidelines and procedures. With the right guidance and documentation, businesses can successfully claim the ERTC and take advantage of this valuable tax credit.
As the COVID-19 pandemic severely impacted businesses across the country, many employers are still struggling with increased costs and supply chain issues. Businesses are seeking ways to reduce their tax liabilities and to save money. One option that is still available to eligible businesses is the Employee Retention Tax Credit (ERTC), a refundable tax credit introduced by the US government for businesses that retained their employees during the pandemic.
While the ERTC has been available to eligible businesses since the early days of the pandemic, some employers may have been told that they were not eligible if they chose the easier and faster Paycheck Protection Program (PPP) loan. You may not have realized you are still eligible or may have missed the opportunity to claim the Employee Retention Credit (ERC) for previous quarters. However, the good news is that it’s possible to claim retroactively the ERTC for previous quarters, as long as certain conditions and criteria are met and the necessary paperwork is prepared by expert specialists.
Why retroactively claim the Employee Retention Tax Credit?
Retroactively claiming the ERTC can be a valuable strategy for businesses that have experienced a decline in revenue or had to suspend or modify operations due to the pandemic. By claiming the credit for previous quarters, businesses can reduce their tax liability for those quarters and potentially receive a refund for any excess credit. With the revisions to the law by Congress and updated IRS guidance, employers who had employees in 2019, 2020, and 2021 can claim the ERTC to the extent legally and ethically allowed.
If employers did not claim the credit at the time, they can retroactively claim it now and potentially receive a refund of the excess credit. This is true regardless of whether the business subsequently closed in 2022.
However, it is important to note that retroactively claiming the ERTC can be a complex process that requires careful documentation and preparation. Employers who are considering retroactively claiming the credit should work with expert specialists to ensure that all necessary paperwork is properly completed and submitted.
How can expert tax credit specialists help businesses with retroactively claiming the ERTC?
Expert specialists can play a valuable role in helping businesses retroactively claim the ERTC. These professionals have experience in preparing the necessary paperwork and navigating the complex requirements of the credit. The IRS has warned business owners to be wary of predatory payroll tax preparers who charge up front fees before calculating whether they qualify for the ERTC or not. Our process will help you collect your documentation without a fee, and our experienced CPAs work in teams that calculate your tax credit refund accurately and double check the other’s work.
Specifically, expert tax credit specialist CPAs can help your business:
- Determine eligibility – Expert specialists can review a business’s financial records, business impacts from COVID-19 restrictions and mandates, along with other documentation to determine whether they were eligible for the ERTC during the quarter(s) in question.
- Identify eligible employees and wages – Expert specialists can help businesses identify which employees and wages qualify for the credit, based on the specific requirements of the ERTC.
- Prepare paperwork – Expert specialists can prepare the necessary paperwork to claim the credit retroactively, including amending previous payroll tax returns and submitting necessary documentation to the IRS.
- Maximize the ERTC payroll tax credit – Expert specialists can help businesses maximize the ERTC by identifying additional wages and expenses that may qualify for the credit, such as certain health plan expenses.
By working with your experienced tax credit strategy consultant, you can avoid the mistake of leaving money that you qualify for on the table.
ERTC Case Studies
Two different businesses had about the same number of employees and qualified for different ERTC refunds. One company in the construction industry has 13 employees (only W-2 employees are eligible for the employer to claim) and this company qualified for $192,038 total ERTC refundable tax credit. A second company in the vehicle repair and customization category has 13 employees and qualified for a total $216,570 ERTC tax credit. As one of the business owners told Michael Glowacki, the tax strategy consultant who worked with these businesses, this means “life-changing money” for a family.
If you are a business owner and think you may be eligible for the ERTC, it is important to consult with a tax strategy expert to ensure that you are following all of the necessary guidelines and procedures and getting the most accurate information about what tax credits your business may qualify for. With the right guidance, ethical calculations, and documentation from our experienced teams of CPAs who triple check each team’s work, your business can successfully claim the ERTC and take advantage of this valuable tax credit.
About the author:
Michael Glowacki helps business owners recover profits and use tax-advantaged strategies to keep more wealth. He mentors and trains people to improve their financial, personal, and professional outcomes.
