Do You Qualify for the Employee Retention Tax Credit (ERTC)?

Navigating the complexities of tax credits can be a daunting task for businesses. The Employee Retention Tax Credit (ERTC) is one such credit, and many businesses must be made aware of their eligibility to receive it. As the largest ERTC company in the nation, we specialize in helping businesses understand their eligibility and maximize their ERTC Advance funding. In this article, we’ll break down the qualification requirements, debunk common misconceptions, and shed light on how this valuable tax incentive can benefit many businesses.

Unraveling the ERTC: Do You Qualify?

The Employee Retention Tax Credit (ERTC) is a refundable tax credit designed to provide financial relief to businesses that faced significant challenges during the COVID-19 pandemic. It was established as part of the CARES Act in March 2020 and aims to support businesses in maintaining their workforce and operations during these challenging times. However, misconceptions about eligibility have led to this valuable tax incentive being underutilized.

Let’s address some of the common misconceptions that might be holding your business back from claiming the ERTC:

Misconception #1: “We had no revenue decline.”

One of the most widespread misconceptions is that a substantial revenue decline is the sole criterion for ERTC qualification. In reality, a company can avoid facing a considerable revenue decline to be eligible for the ERTC. Even businesses with stable or increasing revenue can qualify for this tax credit.

Misconception #2: “Our business is not essential.”

The ERTC is not limited to businesses deemed “essential.” Regardless of its essential status, any small business can apply for and potentially qualify for the Employee Retention Tax Credit.

Misconception #3: “We have received a Paycheck Protection Program loan before.”

Receiving a Paycheck Protection Program (PPP) loan does not disqualify your business from claiming the ERTC. Businesses that have received PPP funding are still eligible for the ERTC. Expert guidance can help you navigate the process and receive your desired funding.

Misconception #4: “My business is too new.”

There’s no such thing as a business being “too new” to qualify for the ERTC. The ERTC program expanded its eligibility criteria to accommodate startups and new businesses established after February 15th, 2020, with gross yearly revenue below $1 million to be more inclusive. Meeting these criteria allows startups to qualify for substantial rebates.

Misconception #5: “It’s too late to apply for the ERTC.”

The good news is that you still have time to claim the ERTC if you’re eligible. Employers can claim the ERTC for qualified wages paid in 2020 and in the first three quarters of 2021. Take advantage of this opportunity to secure valuable funding for your business.

Misconception #6: “We never shut down our business.”

While some businesses were forced to shut down completely, the ERTC has provisions that allow businesses that partially suspended their operations to qualify. Additionally, businesses without a government mandate to shut down can still qualify through revenue decline. The process may be intricate, but you can determine your eligibility with expert assistance.

Misconception #7: “Our revenue went up after a shift in the market.”

Congratulations if your business experienced increased revenue. However, many businesses faced short-term revenue declines in specific quarters of 2020 and 2021 compared to 2019. Even with increased annual revenues, these short-term declines can make your business eligible for the ERTC.

Try it now!

The Employee Retention Tax Credit (ERTC) is a valuable financial resource that many businesses are unaware of or misunderstand. Misconceptions about eligibility have led to underutilization of this tax incentive. Businesses must realize that ERTC eligibility goes beyond a simple revenue decline. With expert guidance and a clear understanding of the criteria, businesses of various sizes and circumstances can qualify for this credit.

If you have any doubts about your eligibility or need assistance claiming the ERTC, contact me. I can help you simplify the process, maximize your refund, and minimize your risk so you can focus on securing your business’s financial future. Don’t let misconceptions keep you from claiming the ERTC credit you deserve.