Frequently asked question #42 “If an Eligible Employer does not determine that it had a significant decline in gross receipts in 2020 until after January 1, 2021, may it still be eligible for the Employee Retention Credit on qualified wages paid in 2020?” under the Determining When an Employer is Considered to have a Significant Decline in Gross Receipts section of FAQs: Employee Retention Credit under the CARES Act, provided by the IRS.gov to help business owners understand the ERC program. Information is below for the question #42 If an Eligible Employer does not determine that it had a significant decline in gross receipts in 2020 until after January 1, 2021, may it still be eligible for the Employee Retention Credit on qualified wages paid in 2020?
ERC Credit Frequently Asked Question #42:
COVID-19-Related Employee Retention Credits:
Determining When an Employer is Considered to have a Significant Decline in Gross Receipts and Maximum Amount of an Eligible Employer’s Employee Retention Credit FAQs
42. If an Eligible Employer does not determine that it had a significant decline in gross receipts in 2020 until after January 1, 2021, may it still be eligible for the Employee Retention Credit on qualified wages paid in 2020?
Yes. The employer may claim the Employee Retention Credit on qualified wages paid in 2020 if it determines that a significant decline in gross receipts occurred in 2020 even if it does not make the determination until after January 1, 2021.
In this case, the employer may claim the credit by filing the appropriate form to report adjustments to its employment taxes, typically Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund.
For more information on correcting employment taxes, see Correcting Employment Taxes.
For more Internal Revenue Service (IRS) Department of the Treasury Employee Retention Credit (ERC) Determining When an Employer is Considered to have a Significant Decline in Gross Receipts FAQs, visit the official IRS.gov tax website.
Conclusion and Summary on ERC Credit FAQ #42. If an Eligible Employer does not determine that it had a significant decline in gross receipts in 2020 until after January 1, 2021, may it still be eligible for the Employee Retention Credit on qualified wages paid in 2020?
The “If an Eligible Employer does not determine that it had a significant decline in gross receipts in 2020 until after January 1, 2021, may it still be eligible for the Employee Retention Credit on qualified wages paid in 2020?” is Frequently Asked Question #42 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 “If an Eligible Employer does not determine that it had a significant decline in gross receipts in 2020 until after January 1, 2021, may it still be eligible for the Employee Retention Credit on qualified wages paid in 2020?” 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 #42.
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.
Cover Image Credit: Irs.gov / ERC FAQ / Disaster Loan Advisors.
As a leading dedicated member of the Tax and Accounting Team at Disaster Loan Advisors™, Mark focuses on unlocking the ERC Tax Credit's potential for eligible firms that qualify, providing strategic advice, and detailed guidance to ensure substantial financial recovery and growth. His methodical approach to client engagement includes comprehensive deep-dive analysis, customized consultation and guidance, and a commitment to achieving tangible results for each business served.
Disaster Loan Advisors™ (DLA) offers a comprehensive suite of services designed to navigate the complexities of the Employee Retention Tax Credit (ERC) program, ensuring that qualified businesses leverage the maximum possible benefit with minimum hassle. Unlike some firms that charge exorbitant contingency or percentage-based fees (often between 10% to 30% of your ERC refund), DLA operates on a fair and reasonable, transparent flat-fee structure that aligns with the IRS's guidelines.
If you are looking for an ERC Company that believes in providing professional ERC Services and value for small business owners, in exchange for a fair, reasonable, and ethical fee for the amount of work required, Disaster Loan Advisors™ is a good fit for you. STAY SAFE. STAY COMPLIANT. KEEP MORE OF YOUR REFUND.™
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