ERC Credit FAQ #57. May An Eligible Employer Treat Payments Made To Former Employees Who Have Terminated Employment As Qualified Wages For Purposes Of The Employee Retention Credit?
Frequently asked question #57 “May an Eligible Employer treat payments made to former employees who have terminated employment as qualified wages for purposes of the Employee Retention Credit?” under the Determining Qualified Wages 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 #57 May an Eligible Employer treat payments made to former employees who have terminated employment as qualified wages for purposes of the Employee Retention Credit?
Table of Contents
ERC Credit Frequently Asked Question #57:
COVID-19-Related Employee Retention Credits:
Determining Qualified Wages FAQs
57. May an Eligible Employer treat payments made to former employees who have terminated employment as qualified wages for purposes of the Employee Retention Credit?
No. Payments, including severance payments, made to a former employee following termination of employment are not considered qualified wages for purposes of the Employee Retention Credit.
Payments may be considered qualified wages only if the payments are made to an employee who continues to be employed by the Eligible Employer.
Payments made in connection with a former employee’s termination of employment are not qualified wages because they are payments for the past employment relationship and thus are not attributable to the time for which the Employee Retention Credit may be claimed. See United States v. Quality Stores, Inc., 572 U.S. 141 (2014).
Whether an employee has terminated employment is based on all of the facts and circumstances, including whether the employer has treated the employment relationship as terminated for purposes other than the continuation of wage payments.
For more Internal Revenue Service (IRS) Department of the Treasury Employee Retention Credit (ERC) Determining Qualified WagesFAQs, visit the official IRS.gov tax website.
Conclusion and Summary on ERC Credit FAQ #57. May an Eligible Employer treat payments made to former employees who have terminated employment as qualified wages for purposes of the Employee Retention Credit?
The “May an Eligible Employer treat payments made to former employees who have terminated employment as qualified wages for purposes of the Employee Retention Credit?” is Frequently Asked Question #57 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 “May an Eligible Employer treat payments made to former employees who have terminated employment as qualified wages for purposes of the Employee Retention Credit?” 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 #57.
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.
Mark Monroe is one of the distinguished Senior Advisors of the Employee Retention Tax Credit (ERC / ERTC) Division at Disaster Loan Advisors™, bringing deep expertise and a proven track record in helping businesses safely navigate and maximize benefits from the ERC Tax Credit, for those businesses that do qualify. His role involves a sophisticated understanding of the tax credit’s legislative framework and the updated changes of intricacies involved in securing these critical financial advantages for companies affected by past tax year economic challenges.
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.™
IRS Employee Retention Credit Tax Consulting and SBA Loan Application Assistance for Small to Medium-Sized Business Owners (SMBs)
DISCLAIMER: We are not part of the SBA or IRS. Our company or website is not endorsed by the SBA or IRS in any way. The SBA and IRS are federal government agencies. Their official websites are SBA.gov and IRS.gov. Disaster Loan Advisors™ is an "Agent" and we provide ERC / ERTC Consulting, Tax Credit Advisory, 941-X Help, SBA Application Preparation, EIDL Loan Reconsideration and Increase Requests, Strategy and other Advisory "Agent Services" as defined by the SBA and IRS.