Does your entity qualify for $26k in erc tax credits? It’s Not too late to file!
Figuring out tax credits can be challenging, but often it is worth the effort. This is one of those instances.
Under the COVID-19 relief funding previously enacted, the Federal government has provided an opportunity for employers to recover a portion of the costs incurred in paying employee wages and/or health insurance between March 20, 2020, and December 31, 2021. For the year 2020, you can potentially receive up to $5,000 per employee, and for 2021, up to $7,000 per quarter or a maximum of $21,000 for the year. However, determining eligibility can be a complex process. To help assess your eligibility, consider the following 3 questions. If you answer "YES" to each of them you have a strong chance of qualifying for some portion of the tax credit.
Did you pay employee wages and/or health insurance benefits for employees during any period between March 20, 2020 - December 31, 2021?
Did your entity’s revenue for 2020 or 2021, fall below your 2019 revenue OR did you shut down during that period because of a mandatory shutdown order by the Federal or a state or a local government agency?
If you received a PPP loan from round 1 or round 2 AND the loan has already been forgiven, did you pay employee wages beyond the amounts reported in your Forgiveness application?
If you can answer “YES” to these 3 questions (if you received a PPP loan) or “YES” to questions #1 and #2, if you did not receive a PPP Loan, then it is likely your entity qualifies for this extraordinary tax credit. Please reach out today, for a complete examination of your eligibility for the 2020 and/or 2021 ERC. Opportunities for unattached working capital can be hard to find for many small businesses, churches, and NPOs.
Do not miss your opportunity to file! The deadline to file for 2020 ERC is March 31, 2024, and it is March 31, 2025, for 2021.
Contact Sankfoa Consulting and let us help!
