In What Ways Can ERTC Fuel Transformation for Your Business?
Many businesses have already claimed the Employee Retention Tax Credit, also known as the ERTC or ERC, and have experienced big changes at their company thanks to the influx of funds from the credit. The ERTC can help fuel innovation and transform your business if you’re eligible to claim it, and all you have to do is apply for the credit before the ERTC deadlines.
How the ERTC Fuels Innovation
If your business qualifies to claim the ERTC, it can provide your company with up to $5,000 per employee kept on your payroll for 2020 and an additional $7,000 per employee you retained for each of the first three quarters of 2021 – during those first, uncertain months of the COVID-19 pandemic.
Ultimately, your business could see thousands and thousands of dollars in an ERTC refund if you are eligible to claim the tax credit and turn in your strongest possible application. That sort of money can totally transform a company – especially a small business.
If you apply for the ERTC and receive funds from the program, you can use that money for just about any needs your company may have. For instance, you could hire additional workers who can help build out current departments or create entirely new teams. Having new team members at your company can certainly fuel innovation, and having a whole new department could help your business offer new products and services, promoting innovation for your business.
You could also use the money you claim from the Employee Retention Tax Credit program to buy new equipment to update your current processes or to expand into a new product or service area. This is a clear way the ERTC can help your business with innovation, and a few years down the road, that money could prove to have helped completely transform what your business looks like now.
ERTC funds could also help you invest in the workforce you already have. That money could help pay for training and workshops for your employees, who can then offer new ideas for your business based on their continuing education. Investing in your employees is never a bad idea, but doing so in a way that can ultimately help your business expand and innovate is a no-brainer.
How to Claim the ERTC
To claim the Employee Retention Credit, after you’ve worked out your eligibility and gathered your documentation, you’ll need to file Form 941-X (Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund).
However, the IRS recently announced a moratorium on the processing of new ERTC claims through the end of the year as a result of concerns about possibly fraudulent applications. If you’re worried about getting your application in on time after the moratorium is over, or if you have concerns about it being as accurate as possible to avoid the wrath of the IRS, you should consider working with a team of tax professionals like the one at Dayes Law Firm to turn in your ERTC claim.
At Dayes Law Firm, our team is experienced in helping businesses with every step of the ERTC claim process and knows all of the information the IRS will be looking for. We’ve already assisted many businesses with this process and we’d be happy to help you, too.
Please contact our firm by calling (800) 503-2000 to learn more. We offer a free, no-obligation consultation to discuss any questions you may have. Give us a call today to find out more!