Employee Retention Tax Credit

The Employee Retention Tax Credit was introduced as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to support the businesses to retain the employees in the business. There is considerable uncertainty in the market over who qualifies, and eligibility, quantity, and availability of the credit rely on numerous variables.

Employee Retention Credit

Employee Retention Credit is a refundable tax credit against employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020 but before January 1, 2021 and 70% of the qualified wages an eligible employer pays to employees after December 31, 2020 but before January 1, 2022.

 

To establish your eligibility, claim credits (proactively or retroactively), and help with regulatory compliance relating to the combination of all aid programmes, we take a comprehensive look at your financial situation.

 

The committed team at Incencred, which includes Enrolled Agent and tax consultants, concentrates on completing ERC applications, negotiating forgiveness terms, and proving eligibility for federal relief programmes.

 

We offer the following

ERTC services

ERTC Assessment

Working on eligibility checkups, industry checkups and business impact analysis.

We determine the eligibility for claiming employee retention tax credits and choose the best course of action to maximize the credits under gross receipts test and shutdown orders

ERTC Filing Support

We prepare ERC tax credits considering various complex parameters like constructive ownerships, payroll costs on PPP loan forgiveness etc., which are critical to compute accurate tax credits.

Preparing the amended payroll tax returns, accurately claiming the tax credits on these, which helps in avoiding the errors and thereby helps in timely processing of the refunds by the IRS

ERTC Compliance Support

Handling ERC audits & notices by the IRS, tracking ERC refunds post tax credit claim submissions.

Our devoted ERC Tax Credit staff at Incencred has nationwide experience of handling ERC complexities and unique situations to solve your ERC issues.

KNOW US BETTER

ERC Eligibility

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Government Restrictions

The business was under full or partial suspension of the operation of their trade or business during any calendar quarter because of governmental orders

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Decline in Gross Receipts

Experienced significant decline in gross receipts of atleast 50% in 2020 or 20% in 2021 on quarterly basis in comparison to 2019 quarterly gross receipts

Recovery Startup Credit

Upto $50,000 in ERC credits for each Q3 2021 & Q4 2021 to leverage the startup businesses who began operations on or after 02/15/2020

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Severely financially distressed employer

A severely financially distressed employer is a business who has experienced a more than 90% decline in current quarter gross receipts compared to the same quarter in 2019.

Work Process

Submit a simple application
with details about your business.
Choose a company type and a state.

The first step is to decide in which state you want your business to incorporate in. Next, the legal entity type within that state. There are benefits to each choice and we've laid out some information below to help you decide. The most common option is an LLC incorporated in Delaware.

  • LLC. A limited liability company is an organizational business structures in the United States that helps business owners separate their personal liabilities from the business liabilities.
  • Delaware. The gold standard for startups planning to raise funding from angel investors and venture capital firms. Most Fortune 500 companies are incorporated in Delaware.
  • Wyoming. Great state for smaller, privately controlled companies. Extremely low cost, very manageable, and flexible as your company grows.
Submit a simple application
with details about your business.
Choose a company type and a state.

The first step is to decide in which state you want your business to incorporate in. Next, the legal entity type within that state. There are benefits to each choice and we've laid out some information below to help you decide. The most common option is an LLC incorporated in Delaware.

  • LLC. A limited liability company is an organizational business structures in the United States that helps business owners separate their personal liabilities from the business liabilities.
  • Delaware. The gold standard for startups planning to raise funding from angel investors and venture capital firms. Most Fortune 500 companies are incorporated in Delaware.
  • Wyoming. Great state for smaller, privately controlled companies. Extremely low cost, very manageable, and flexible as your company grows.
Submit a simple application
with details about your business.
Choose a company type and a state.

The first step is to decide in which state you want your business to incorporate in. Next, the legal entity type within that state. There are benefits to each choice and we've laid out some information below to help you decide. The most common option is an LLC incorporated in Delaware.

  • LLC. A limited liability company is an organizational business structures in the United States that helps business owners separate their personal liabilities from the business liabilities.
  • Delaware. The gold standard for startups planning to raise funding from angel investors and venture capital firms. Most Fortune 500 companies are incorporated in Delaware.
  • Wyoming. Great state for smaller, privately controlled companies. Extremely low cost, very manageable, and flexible as your company grows.
Case Study

Dream. Innovate. Implement.

Our extensive tax credit team is the finest in the industry. We cultivate smart ideas for start-ups and successful businesses in the industry. By adhering to the best practices, we provide next generation tax credit consultancy.

  • We provide free initial consultation to explore the tax credits eligibility.
  • We work with some of the most successful businesses in the industry and start-ups
Testimonials
Alex Martin Envato Customer
Terry Figueroa Marketing Manager
Kaycee Hess Human Resources

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Awesome Works

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FAQ

Employee retention tax credit abbreviated as “ERC” is a retroactive refundable tax credit provided by the CARES Act in 2020 for supporting businesses to retain employees in  2020 & 2021.
Employers who were impacted as follows are eligible for ERTC:1. full or partial suspension orders by the Government, or2. Had significant decline in sales, or3. Started business operations after 02/15/2020, or4. Severely financially distressed employer
Employee retention tax credit (ERC) are not taxable but the employers are required to reduce wages declared on income tax returns for respective years for which Employee retention tax credit have been approved by the IRS. You will have to file an amended income tax return in most cases.
Employee retention tax credit (ERC) can be claimed until Q3 2021 for businesses other than recovery startups & severely financially distressed employer. If your business qualifies as recovery startups or severely financially distressed employer , then you can be eligible for Q3 2021 & Q4 2021 Employee retention tax credit (ERC).
The lawmakers passed Infrastructure Act (Bipartisan Law) to restrict the businesses from claiming Employee retention tax credit (ERC) beyond Q4 2021. There are no signs for ERC to be extended for 2022 despite businesses are still struggling to get back with normal operations.
Yes, Non profit organizaions are equally eligible as other for profit businesses to claim Employee retention tax credit (ERC).
Yes, even if you incorporated or started your business operations in 2020, you are still eligible for Employee retention tax credit (ERC) under normal eligibility route or recovery startup business.
Yes, employers who have availed PPP loan forgiveness are still eligible for Employee retention tax credit (ERC). However, no double dipping of payroll costs as declared on PPP loan forgiveness applications.
As per Constructive ownership rules, owners having more than 50% interest in the business are not eligible for Employee retention tax credit (ERC). However, other non related employees can still be eligible for Employee retention tax credit (ERC)
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