Can Digital Tools and Software Help Businesses with the ERTC?

November 23, 2023
Dayes Law Firm

If your business suffered due to government-mandated shutdowns during the COVID-19 pandemic, you may qualify for the Employee Retention Tax Credit (ERTC) program.

Many companies haven’t considered the ERTC (also called ERC, or Employee Retention Credit) or think it is too late to apply. The good news is that eligible businesses can still claim their tax credit until 2025. If your company qualifies, you may look for ERTC software to streamline your application while helping you meet IRS rules.

One way to ensure compliance is to work with a law firm with experience filing ERTC claims. Additionally, the following tips will help you find and evaluate ERTC software programs. 

Does My Business Qualify for ERTC?

As you may have guessed from the many ERTC eligibility quizzes popping up online, the first step of receiving this tax credit is finding out if you qualify. The ERTC criteria is complex, involving how many employees you have, how much you paid in qualified wages during each quarter of 2020 and 2021, and how much revenue your business lost. The key specifications include the following:

  • Your company lost 50% of revenue per quarter in 2020 or 20% in the first three quarters of 2021.
  • Your business had to shut down due to governmental COVID-19 orders.
  • You kept full-time staff on your payroll.

In short, if your business suffered a substantial drop in gross receipts, experienced a full or partial shutdown due to a COVID-19 order, and retained full-time personnel on staff, you may be able to claim the ERTC.

How Can ERTC Software Help Me?

When choosing digital tools, look for ERC tax credit software that helps you do the following:

  • Check that you meet all eligibility requirements
  • Calculate qualified wages you paid during qualifying quarters
  • Ensure compliance with tax codes
  • Accurately handle all IRS paperwork 

What Kind of ERTC Software is on the Market?

Three available software providers that can help companies claim their ERTC include:

  • Patriot Software: This program handles tax credit intricacies within a simple, user-friendly platform. 
  • ERTC.io: This dedicated software optimizes employee retention credit calculations to maximize the return for your business.
  • Paycom: This system adds payroll services to its ERTC assistance.

Since each has its strengths and weaknesses, the right choice for you depends on your business needs and personal preferences.  

What Downsides Does ERTC Software Have?

While ERTC software can help simplify a complicated process, there are some potential disadvantages.

  • Complicated Eligibility Requirements: Tax laws are complicated, eligibility requirements are confusing, and government programs are often changing. Software programs can struggle to keep up. 
  • Lack of Support for Amended Tax Returns: One drawback to applying for the ERTC tax credit is the requirement to file an amended payroll tax return. Unfortunately, not all software programs offer support for amended tax returns. 
  • Information Security Concerns: You don’t want to compromise sensitive company data, so make sure your ERTC software takes information security as seriously as you do.

To avoid these drawbacks, you can instead work with a dedicated team of ERTC lawyers who can walk you through the process and help you file a claim.

Can an ERTC Lawyer Help Me?

If you want to skip the hassle of using an ERTC software program and work with a team of people who can answer your questions, Dayes Law Firm is here to help. Our ERC refund lawyers are dedicated to helping clients get their legally entitled refunds. Contact us at 800-503-2000 for a free consultation.