Employee Retention Tax Credit | https://hrchamber.com/
Employee Retention Tax Credit | https://hrchamber.com/
Employee Retention Tax Credit
Since the beginning of COVID-19, many changes occurred regarding the Employee Retention Tax Credit which led to businesses that were previously ineligible to now be potentially eligible for credit.
At our recent Chamber Education Series event, Dick Olenych, Partner of Rapid Pay USA, led a workshop about the Employee Retention Tax Credit. This question and answer based event was tailored to each participant’s questions while providing a high-level overview of the program in general.
Here were the top questions and corresponding answers:
When should I apply for the Employee Retention Tax Credit?
If you plan to apply, Dick suggests you start the process as soon as possible. This program will sunset at the end of December 2023 and you want to be prepared for any delays that may occur. If your information is sent back due to mailing issues or missing information, there is a possibility that the information may get to the IRS too late once the issues are resolved.
Pro Tip: Start sooner rather than later.
What are the most common ways to file for the Employee Retention Tax Credit?
- File it by yourself on behalf of your business
- Work with your accountant or bookkeeper
- Utilize a service such as COVID Credits that specializes in filing
What are the signs that I might be falling victim to a scam by a filing service?
Dick explained that if a company promises a quick return of only a few weeks, take caution. He reminded us that this money comes from the IRS and that a quick processing turnaround is typically unusual. It was also mentioned that if a company asks for any funds upfront before assessing your business, you may want to look into a different company. Individuals that pay these upfront fees typically find themselves in a situation where they are scammed.
Pro Tip: Don’t be scammed! Do your research.
Why should I consider working with a trusted filing service rather than an accountant?
We learned that when applying for the Employee Retention Tax Credit, your eligibility is based on much more than numbers. Dick strongly recommends providing written documentation and explanations for everything. When numbers could potentially exclude you, your written explanation of your experience could change that!
Additionally, if a return credit estimate appears to be at a million dollars or more, sometimes accountants are weary of filing, whereas a company that specializes in filing Employee Retention Tax Credit would be an expert in this process.
Pro Tip: Consider using a filing service.
Learn more about Employee Retention Tax Credit at:
- https://www.irs.gov/coronavirus/employee-retention-credit
- https://home.treasury.gov/system/files/136/Employee-Retention-Tax-Credit.pdf
- https://www.uschamber.com/co/run/finance/how-to-get-employee-retention-tax-credit
Don’t forget to check out our website for information about future Chamber Education Series events!
Original source can be found here
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