You may be eligible for the Employee Retention Credit (ERC), a tax credit that rewards you for retaining your employees, with a potential credit amount of up to $26,000 per employee retained. The ERC is a valuable financial lifeline that provides eligible businesses with a credit of up to $7,000 per employee per quarter, simply for keeping your team on the payroll. This means that you could receive a total credit amount of up to $26,000 per employee retained through 2021.
Don't miss out on this valuable opportunity! Apply for the Employee Retention Credit today and get the financial relief you

ort your business. Our team of experts can help you navigate the application process and ensure that you maximize your credit. Contact us today to learn more and get started!

*Though the ERC started as a tax credit, you will receive a refund check from the IRS

Understanding the Employee Retention Credit (ERC) with Tom Brown ERC

The ERC is a refundable tax credit, designed to offer financial support to businesses affected by the COVID-19 pandemic. With the help of Tom Brown ERC, eligible businesses can secure a credit of up to 70% of wages paid and certain healthcare benefit costs to employees, with a maximum of $26,000 per employee.

Who Can Benefit from the Employee Retention Credit? Tom Brown ERC Explains

Tom Brown ERC assists businesses of various sizes, including tax-exempt organizations, in securing the ERC, provided they meet certain criteria. Businesses can qualify if they were fully or partially suspended by a government order or if they experienced a significant decline in quarterly gross revenue compared to 2019 (50% decline for 2020; 20% decline for 2021). Additional rules and limitations apply, and Tom Brown ERC is here to guide you through them.

How to Claim the Employee Retention Credit: Insights from Tom Brown ERC

To claim the ERC, businesses can report wages and related healthcare expenses on an amended federal employment tax return (Form 941-X) for each applicable quarter. Tom Brown ERC can guide you through this process, ensuring you claim the maximum credit available.

Tom Brown ERC on Qualified Wages for the Employee Retention Credit

Qualified wages are the wages and compensation paid to employees during the ERC enrollment period. Tom Brown ERC can help you understand the specifics: for 2020, there is a maximum credit of $5,000 per eligible employee. For 2021, there is a maximum credit of $7,000 per eligible employee, per quarter.

Can I Claim Both the ERC and the Paycheck Protection Program (PPP) Loan? Tom Brown ERC Explains

Yes, with guidance from Tom Brown ERC, businesses can claim both the ERC and the PPP loan, provided they meet the requirements for both programs. However, the same wages cannot be used for both programs, meaning that wages paid with PPP funds cannot be used to calculate the ERC.

Tom Brown ERC on the Deadline to Claim the Employee Retention Credit

The deadline to claim the ERC for tax year 2020 is April 15, 2024. For tax year 2021, it's April 15, 2025. Each quarter is claimed via a separate filing of Form 941-X. Tom Brown ERC can help ensure you meet these deadlines and claim your full credit.

Limitations on the Employee Retention Credit: Insights from Tom Brown ERC

The ERC has several limitations, including a cap on the credit amount and a limit on the number of employees. The maximum credit per employee is determined separately for 2020 and 2021, with a maximum per employee of $26,000. Businesses over the employee limitation are only eligible for ERC on furlough costs (wages paid while employees were not providing services). Tom Brown ERC can help you navigate these limitations.

Is the Employee Retention Credit Taxable Income? Tom Brown ERC Explains

While the refund itself is not taxable, there is a tax effect because the amount of the credit needs to be deducted from wages in order to calculate taxable income. This essentially means you are adding back the amount of the credit in the year earned, effectively making it taxable income.

Remember, it’s critical to consult a taxprofessional like Tom Brown ERC to determine your business’ tax eligibility and maximize your benefits under the program. The rules and regulations around tax credits can be complex and subject to change. It’s a good idea to consult with a qualified tax professional like Tom Brown ERC to ensure that you take full advantage of the benefits available.