How Can Tech Companies Claim the ERTC with Optimal Results?

February 12, 2024
Dayes Law Firm

With limited time left to claim the Employee Retention Tax Credit, sometimes referred to as the ERTC or ERC, companies that are eligible to claim it but haven’t done so will need to be strategic about their approach to applying for the tax credit. Companies in all kinds of industries may qualify to claim the ERTC, including tech companies. How can they dive into the process of claiming the ERTC effectively?

How Tech Companies Can Dive Deep into ERTC Strategies for Best Results

The ERTC is a refundable tax credit introduced under the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, to encourage employers to keep staff on their payroll at the height of the COVID-19 pandemic. It is available to claim for eligible wages from certain quarters in 2020 and 2021.

A business may be eligible to claim the Employee Retention Tax Credit if it experienced a significant decline in gross receipts compared to the same quarter in 2019, or if it encountered fully or partially suspended operations due to government orders during the pandemic. Businesses may be able to seek a refund of up to $26,000 per employee for the eligibility period in 2020 and 2021, which is certainly an amount of money that could help a small business, including ones in the tech space. 

For all quarters in 2020, the deadline to apply for the ERTC is currently April 15, 2024. For all quarters in 2021, the deadline is April 15, 2025. However, that might change – and soon. If the Tax Relief for American Families and Workers Act of 2024 passes in its current state, that deadline may change to January 31, 2024.

So, how can tech companies do a deep dive into the best ERTC strategies to get the best results in an ERTC tax refund? First of all, they should gather all applicable documentation to claim the credit and determine whether or not they need the assistance of a tax professional to get the application done swiftly, effectively, and accurately. 

Doing extensive research into the information you need about your tech company to claim the credit is the best way to do a deep dive and strategize on how to approach completing your ERTC claim. If, after that, you think you can handle the application process on your own, great! But a tax attorney could help you achieve optimal results with less effort on your part. 

Many tech companies are startups, and their owners and employees don’t have the time to do all the work involved in turning in the strongest Employee Retention Tax Credit claim possible because they’re doing ten million other things to keep the company afloat. To approach applying for the ERTC with the best strategy and the most knowledgeable professionals involved, you should consider working with a tax attorney on your ERTC claim. 

How an ERTC Specialist at Dayes Law Firm Can Help

ERTC specialists, like the team at Dayes Law Firm, can evaluate your claim from the very beginning to make sure every piece of documentation going to the IRS is correct for optimal results – and an optimal credit. Working with a tax professional may be the best strategy to apply for the ERTC because they already have lots of experience in dealing with other claims as well as a team and resources on hand to focus on the work.

The tax professionals at Dayes Law Firm can not only talk you through any questions or concerns you may have about the ERTC but can offer strong assistance with ERTC application-related complications such as audits and defense of audits as well. This is hopefully not an issue you’ll run into, but working with a tax attorney who knows how to handle these complications may be the best strategy to deal with potential issues down the road.
Please give our skilled team of tax professionals a call to discuss your ERTC options. You are under no obligation to work with our firm after the initial evaluation, and the initial consultation is free! Call us at (800) 503-2000 to learn more – we look forward to hearing from you!