What Opportunities Are Lost If Your Business Ignores ERTC Claims?

December 26, 2023
Dayes Law Firm

Business owners who are qualified to claim the Employee Retention Tax Credit (ERTC/ERC) for their business but haven’t yet done so are missing out on some incredible opportunities. Let’s take a look at what you might be losing out on by ignoring claiming the ERTC, and how a tax professional can help you claim the tax credit before more time is lost. 

What Opportunities Are Lost By Failing to File an ERTC Claim? 

The ERTC reduces payroll taxes by paying you back for part of the eligible employee wages you paid in 2020 and 2021, which ultimately offsets the cost of your payroll taxes. This is an obvious opportunity your business may be missing, if you avoid claiming the ERTC.

The maximum credit allowed for the ERTC for 2020 is $5,000 per employee. 2021’s qualifying payment period for the Employee Retention Tax Credit is from January 1 to September 30 – unless you qualify as a Recovery Startup Business, which extends the period to December 31, 2021 – and for 2021, you can claim a maximum of $7,000 for each employee per quarter. That totals a potential $21,000 per employee for 2021.

That means you could be missing out on claiming $26,000 per employee for your business by ignoring the ERTC program and not turning in a claim. That’s a serious chunk of change to leave on the table for any business, especially ones that may still be financially recovering after the worst economic impacts of the COVID-19 pandemic. 

You could use the ERTC refund money you and your business may be entitled to for so many opportunities! The money could be used to pay down debt, add new benefits to your benefits package for your employees, hire new staff members, give bonuses to employees who stuck with you through the worst of the pandemic, and so much more.

You could be losing out on major opportunities for your business by ignoring the Employee Retention Tax Credit. If you’ve been waiting to start or expand a project, upgrade equipment, or increase your marketing budget, funds from your ERTC claim could help make those things happen. By holding off or ignoring the ERTC entirely, you could be really missing out on big, important changes that could transform your business. 

Working With a Tax Professional on the ERTC

If you’ve been avoiding making an ERTC claim because it’s just another task to add to your already long to-do list as an employer, or because the application process seems complicated to you, or you’re worried about doing part of your application incorrectly and drawing the ire of the IRS, a tax professional may be able to help. 

Here at Dayes Law Firm, our team can help you understand your eligibility for the Employee Retention Tax Credit, guide you through the application process, assist with any of the documentation you need to include, and so much more. We can even help you if you do face increased scrutiny from the IRS later or get caught up in an ERTC claim audit
Please contact us today by giving us a call at (800) 503-2000 or fill out the online form on our contact page to schedule your free, no-obligation consultation. A member of our team would be more than happy to answer any questions you may have about the ERTC claim process. Call today to learn more!