Federal Employee Retention Tax Credit

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Federal Employee Retention Tax Credit

Did your business suffer material reduction in revenues during the Covid Pandemic in 2020 and 2021?

Did your business have to partially or fully shutdown as a result of federal, state or local governmental orders during the Covid crisis in 2020 or 2021?

Did you start a new business, in 2020 or 2021 during the Covid crisis?

If any of the above criteria are met, you may qualify for the Federal Employee Retention Tax Credit, or the ERTC.

The ERTC is a refundable tax credit that businesses can claim on qualified wages, including certain health insurance costs, paid to employees. Yes the credit is refundable, and you will receive an actual check from the IRS if you qualify.

For employers who qualify for the ERTC in 2020, including borrowers who took a loan under the initial PPP, the credit can be claimed against 50 percent of qualified wages paid, up to $10,000 per employee annually for wages paid between March 13 and Dec. 31, 2020.

For employers who qualify for the ERTC in 2021, including PPP recipients, can claim a credit against 70% of qualified wages paid. The amount of wages that qualifies for the credit is $10,000 per employee per quarter, so a maximum of $7,000 per employee per quarter is allowed Therefore, an employer could claim $7,000 per quarter per employee through the first three quarters of 2021, for a maximum of $21,000 per employee for the 2021 tax year.

Further, a recovery startup business may qualify for up to $50,000 per quarter of ERTC for the 3 rd and 4 th quarter of 2021.

We are experts in the ERTC and have obtained over $1,000,000 in refunds for our clients for which we have filed for the ERTC refund, and have drafted countless legal memorandums supporting ERTC refund claims that have resulted in over $10,000,000 in refunds to date.

Please contact us at (212)281-6064 or at [email protected] for a consultation.

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