ERTC and Automation: Tips for Streamlining the ERTC Process

September 28, 2023
Dayes Law Firm

If you qualify for the ERTC, you probably want to secure your credits as soon as possible. The ERTC process can be slow, as you’ll need to add up all the qualified wages for your employees for both the 2020 and 2021 tax years and amend your tax returns. 

You can take a few measures to speed up this process and secure your tax credits sooner. Below are a few tips to streamline the ERTC process.

Start the Application Process Now

This tip may seem intuitive, but the fastest way to secure your ERTC funds is to start the process now.

You can claim your 2020 credits retroactively until April 15, 2024, and your 2021 credits until April 15, 2025. This deadline seems like a long way off, and you may not feel any urgency to complete your application. 

However, the IRS could take up to 12 months to process your funds. Waiting until the application deadline could mean you won’t see your tax credits until 2026. Instead, start the process now and submit your amended tax returns as soon as possible to streamline the ERTC process. 

Keep Good Accounting Records

Keeping organized, accurate records of your business’s finances is important for a smooth and stress-free tax filing process. When you claim the ERTC, you’ll need to add up the qualifying wages to request for each employee, totaling up to $25,000 for the 2020 and 2021 tax years. This process will take a lot more time if you don’t have clear records of your employee payments. 

You’ll also need to confirm that you experienced a significant decline in gross receipts (50% in 2020 or 20% in 2021 compared to 2019) to qualify for the ERTC. Gross receipts can include virtually any income your business earned, outside of a few exceptions like PPP loans. If your gross receipts don’t meet this threshold, you may only qualify for the ERTC if your business experienced full or partial shutdowns in response to government mandates. 

If your bookkeeping currently isn’t in order, take some time to organize your finances before you begin the filing process. Moving forward, keep your finances neat to prevent future tax delays. 

Consider an ERTC Advance

If you’ve already submitted your Form 941-X amended tax returns and are still waiting on the IRS to process your credits, you may consider applying for an ERTC advance to secure the money faster. You would essentially sell your ERTC credits to a bank or other financial institution, paying anywhere from 11% to 30% in fees. 

This option would only make sense if your business is experiencing financial hardship and you desperately need your credits now. Otherwise, you’ll get more back by waiting for the IRS to process your application. 

Work With a Tax Professional

Submitting Form 941-X with any errors will only prolong your ERTC process. You’ll need to correct errors, resubmit your tax forms, and then wait for the IRS to approve them. You could even owe back money that the IRS previously credited you. 

If you don’t feel confident claiming the ERTC accurately, work with a tax professional to streamline this process. Tax attorneys and other tax professionals can evaluate your bookkeeping to ensure you’re eligible for the ERTC, calculate your qualified wages, and even submit Form 941-X on your behalf. 

Contact Dayes Law Firm for ERTC Assistance 

Want to automate and streamline your ERTC process? Our tax attorneys at Dayes Law Firm can help you submit your tax information faster and avoid inaccuracies that would cause delays. Contact us today at 866-567-4510 for tax assistance.