With everything a small business owner needs to do every day, it’s no surprise that some employers haven’t yet applied for the Employee Retention Tax Credit (ERC/ERTC) even if they’re eligible to do so. There are documents to compile to qualify for the ERTC refund, and even if it is something you could handle on your own, it might be a good idea to call in reinforcements and get an ERTC team involved to help you out.
Employee Retention Tax Credit Refunds
The Employee Retention Tax Credit was introduced to help encourage businesses to keep their employees on payroll during the height of the COVID-19 pandemic. It is a refundable payroll tax credit many businesses can claim on qualified wages paid to their employees for certain 2020 and 2021 quarters and was included in the CARES Act – the Coronavirus Aid, Relief, and Economic Security Act.
The tax credit is available to employers that experienced either a full or partial shutdown of operations due to a governmental order related to COVID-19, or if a business underwent a decline in gross receipts in 2020 or 2021 when compared to the same quarter in 2019.
ERTC Refund Documents to Compile
You will need to compile several documents to apply for the ERTC and potentially get a refund.
To apply in the first place, you’ll need to file an amended Form 941X (Quarterly Federal Payroll Tax Return). But you may also need other documentation to support your claim.
For instance, as a business owner, you may need to offer up a Profit and Loss sheet for each quarter of 2019, 2020, and 2021 to apply for the ERTC and support your claim. You’ll likely also need payroll summary reports and related documentation on your number of employees and what time of employee they are (full-time equivalent versus part-time staff).
If you applied for a Payroll Protection Program loan, you may also need to produce PPP loan documents, including a forgiveness application if applicable. At one time, if you received a PPP loan, you couldn’t apply for the ERTC as well, but that’s no longer the case.
Additionally, you may need documentation regarding healthcare offered to your employees, since it can be considered a part of compensation for your employees.
If that all seems overwhelming, you may want to utilize the services of a tax professional to handle your ERTC application instead.
How Dayes Law Firm Can Help
Tax professionals who are already experienced in helping businesses with their Employee Retention Tax Credit applications know all about documenting and supplying the information needed to apply for the tax credit.
The ERTC team at Dayes Law Firm has already been involved in filing for more than $250 million in refunds on behalf of many businesses to date, and we’d be happy to help you and your business as well!
We can help you with all the documents you need to compile to qualify for an ERTC refund. Our firm offers a free, no-obligation consultation regarding any of your ERTC questions, and we can go over any concerns you may have about supporting documents for your claim during that evaluation.
Contact Dayes Law Firm by giving us a call today or fill out the form on this page to see how we can best assist you and your business with documentation to claim the ERTC. We look forward to hearing from you!