Benefits of Hiring a Tax Professional to Assist with the ERC

August 10, 2023
Dayes Law Firm

As a business owner, you constantly juggle several tasks at once.

Between federal and state taxes, the pressure to be accurate, and complicated tax credits like the ERTC, filing taxes can be time-consuming and frustrating. Are you worried that you’re not paying enough in taxes? Are you worried you’re paying too much

Hiring a tax professional ensures that your taxes are accurate and you’re taking advantage of tax credits you’re eligible to receive. 

A Tax Professional Can Assist With ERTC Questions and Complications

The Employee Retention Tax Credit, or ERTC, is a recent opportunity for businesses to recover from the impact of COVID-19. The tax credit rewards employers for keeping employees on the payroll during times of financial difficulty. 

However, you might not know how to account for the credit in your taxes. Because the credit is new, Congress has already made changes to it to address the ever-changing state of the economy.

How Much Can I Claim With the ERTC?

In 2020, businesses could claim up to $5,000 for each eligible employee. In the first quarter of 2021, this number rose to $7,000 per employee. 

Congress also expanded the qualifications for ERTC. These changes make it difficult to track your business’s eligibility for credit. Even after you determine eligibility, you need to know how to claim it on your taxes. 

Can I still File for the ERTC?

It’s not too late to file for the ERTC. To retroactively file for ERTC in 2023, file Form 941-X, an amended version of your Form 941 payroll tax return.

To qualify for ERTC, you must meet the criteria for 2020 and 2021.

For 2020, you must have:

  • 100 or fewer employees on your payroll
  • Kept those employees on your payroll
  • Experienced a partial or full shutdown due to a government order, or revenue decline by 50% or more in any quarter compared to your revenue in 2019

For 2021, you must have:

  • 500 or fewer employees on your payroll
  • Kept those employees on your payroll
  • Experienced a partial or full shutdown due to a government order, or revenue decline by 20% or more in the first three quarters of 2021 compared to your revenue in 2019

What Tax Form Do I Need to File for the ERTC?

To file for the ERTC, you’ll need:

  • 2019, 2021, and 2022 Profit and Loss statements
  • Monthly payroll ledgers
  • Form 941 and Form 941-X
  • Group Healthcare Statement for 2021 and 2022, if applicable
  • PPP Form 3508, if you collected PPP loan forgiveness

Other Tax Credits You May Be Missing Out On

If you’re unaware of even one tax credit you’re eligible for, you could be paying more than necessary in taxes. 

Many businesses don’t know they qualify for Research and Development credit. This credit incentivizes innovation and lets you deduct any qualifying research expenses.

The Work Opportunity Credit is another commonly forgotten credit. It encourages businesses to hire employees from groups that typically have a harder time finding employment.

Find out about these credits and more with a qualified tax professional.

Tax Professionals at Dayes Law Firm Can Help

All businesses can benefit from hiring a tax professional to assist with their taxes. A tax attorney can help you submit amended tax forms if you’re worried you missed out on tax credits. 

You’ll never have to worry about accuracy or missed opportunities regarding your business’s taxes again. 

Dayes Law Firm has assisted hundreds of businesses in filing for the ERTC, representing over $100 million in tax credits. Contact a tax professional at Dayes Law Firm today at (800) 503-2000 for a free consultation.