The Employee Retention Tax Credit is an enormous opportunity for most small business owners, but many still have not applied for their refund check yet.
The Employee Retention Tax Credit (ERC or ERTC) is a tremendously misunderstood opportunity for many small-to-midsize employers, but as more and more companies begin to realize they're eligible for this once-in-a-pandemic payroll tax refund, the application backlog is continuing to grow daily.
If you're interested, the following website has a comprehensive FAQ section as well as a free 30-second eligibility quiz that's been updated based on the most recent legislation: https://rebrand.ly/ercamp
At the time of writing, the current turnaround from initial application to the actual refund check being sent back to the business is usually between 5-9+ months. (But that's also assuming that the calculations were done correctly from the outset).
If not, any required corrections or changes can result in much longer delays, which is why it's critically important to make sure they're done accurately the first time.
Likewise, based on the current turnaround times and increasing economic uncertainty, some businesses might benefit from "selling" their ERC rebate in advance of receiving it. Doing so can result in the business receiving their funds in just 2-4 weeks rather than the current 5-9+ month timeline.
If that sounds interesting, you can view this educational video that explains how the ERC loan financing and cash advance process works: https://youtu.be/6ApZJjMaLXQ
Likewise, considering the legislation for the Employee Retention Tax Credit has changed several times over the past two years, there is still a lot of confusion (even among CPAs, accountants, and other financial advisors) about which companies are eligible for this refund program now.
A recent article in Forbes was quoted, "The IRS management anticipated that approximately 70%-80% of small and medium businesses (as well as tens of thousands of charities) were good candidates for taking the ERC. The reality is — to date the actual numbers of businesses and charities applying for the ERC — is far below that. Small and medium businesses (as well as tax-exempts/charities) are leaving billions of dollars on the table."
As with anything, you should always consult your financial, tax and legal advisors first, but for anyone who hasn't yet applied for the ERC yet (or those who were given outdated information in the past), it might be prudent to consider getting a 2nd or 3rd opinion to be sure this isn't a missed opportunity. Especially considering that the timeline available to apply for these refunds is limited.
If you're interested, the following website has a comprehensive FAQ section as well as a free 30-second eligibility quiz that's been updated based on the most recent legislation: https://rebrand.ly/ercamp
It's also important to know that both startups, as well as businesses that were sold or closed down (in 2020 or 2021), can still qualify for this tax credit too.
