ERC Credit FAQ #12. What Makes The Employee Retention Credit “Fully Refundable”?

Frequently asked question #12 “What makes the Employee Retention Credit fully refundable?” under the General Information section of FAQs: Employee Retention Credit under the CARES Act, provided by the to help business owners understand the ERC program. Information is below for the question #12 What makes the Employee Retention Credit “fully refundable”?

ERC Credit Frequently Asked Question #12:

General Information FAQs

12. What makes the Employee Retention Credit “fully refundable”?

The credit is fully refundable because the Eligible Employer may get a refund if the amount of the credit is more than certain federal employment taxes the Eligible Employer owes.  

That is, if for any calendar quarter the amount of the credit the Eligible Employer is entitled to exceeds the employer’s share of the social security tax on all wages (or on all compensation for employers subject to RRTA) paid to all employees, then the excess is treated as an overpayment and refunded to the employer under sections 6402(a) and 6413(a) of the Internal Revenue Code (the “Code”).  

Consistent with its treatment as an overpayment, the excess will be applied to offset any remaining tax liability on the employment tax return and the amount of any remaining excess will be reflected as an overpayment on the return.  

Like other overpayments of federal taxes, the overpayment will be subject to offset under section 6402(a) of the Code prior to being refunded to the employer. 

For more information on the reduction in deposits for the credit and deferral of payment and deposit of the employer’s share of social security taxes due before January 1, 2021 under section 2302 of the CARES Act, see Deferral of employment tax deposits and payments through December 31, 2020.

For more information on the claiming the refundable Employee Retention Credit, see How to Claim the Employee Retention Credit.

For more Internal Revenue Service (IRS) Department of the Treasury Employee Retention Credit (ERC) General Information FAQs, visit the official tax website.

Conclusion and Summary on ERC Credit FAQ #12. What makes the Employee Retention Credit “fully refundable”?

The “What makes the Employee Retention Credit fully refundable?” is Frequently Asked Question #12 of many commonly asked questions small business owners are wondering about how to file the Employee Retention Tax Credit (ERTC). The IRS ERC Tax Credit program is a confusing and complex process to determine the correct ERC calculations your business qualifies for. Answers to “What makes the Employee Retention Credit fully refundable?” and filling out form 941-X may change slightly from frequently updated rules and regulations from the IRS. Leave a comment below if you have further questions on ERC Credit FAQ #12.

Help Completing / Filing / Claiming the Employee Retention Credit (ERC)

Receive Up to a $26,000 ERC Credit from the IRS Per Employee

Disaster Loan Advisors can assist your business with the complex and confusing Employee Retention Credit (ERC), Form 941-X, and the Employee Retention Tax Credit (ERTC) program. 

Depending on eligibility, business owners and companies can receive up to $26,000 per employee based on the number of W2 employees you had on the payroll in 2020 and 2021.

The ERC / ERTC Tax Credit Program is a valuable IRS tax credit you can claim. This is money you have already paid to the IRS in payroll taxes for your W2 employees.

We DO NOT charge a percentage (%) of your ERC Refund like some companies are charging. Some ERC firms out there are charging upwards of 15% to 35% of your ERC refund!

Our professional ERC fee and pricing structure is very reasonable in comparison.

If you are looking for an ERC Company that believes in providing professional ERC Services and value, in exchange for a fair, reasonable, and ethical fee for the amount of work required, Disaster Loan Advisors is a good fit for you. 

Schedule Your Free Employee Retention Credit Consultation to see what amount of employee retention tax credit your company qualifies for.

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Mark Monroe

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