Trusted tax attorneys who are knowledgeable about the laws regarding the Employee Retention Tax Credit and assist businesses throughout the United States in applying for the credit
To combat the negative impacts caused by the COVID-19 pandemic on businesses, the federal government has trillions of dollars on incentive programs like the Paycheck Protection Program and the Employee Retention Tax Credit or ERTC. And, as probably the most misunderstood portions of the pandemic relief packages passed by Congress, the ERTC program is often not taken advantage of by businesses due to a lack of understanding of its eligibility criteria.
As attorneys who are knowledgeable about ERTC eligibility, Biz Head Law is committed to helping business owners understand the ERTC and, if appropriate, navigate their way to qualifying their business for it.
So, how can a business be eligible for the ERTC?
What most businesses don’t know is that even if they were only partially impacted by limitations on their business due to government order, received PPP that was forgiven, or didn’t experience a drop in gross revenue, they may still be eligible for tax credit as long as they experienced a “greater than nominal impact” due to government mandates and restrictions in 2020 or 2021.
One common misconception about ERTC is that many business owners believe that if they got a Paycheck Protection Program (PPP) loan, they could not get an Employee Retention Credit as well. In fact, many CPAs advised their clients that they could not get both the PPP and ERTC. However, the law evolved and the ERTC and the PPP are not mutually exclusive. The law allows businesses to access the ERTC even if they have already received one or both rounds of PPP money. However, the law requires that, as part of calculating the ERTC, a business must subtract from its wage calculations, any wages that were paid using funds provided under the PPP. That said, even after deducting wages paid using PPP loan dollars, most businesses still realize a substantial sum under the ERTC program.
In addition, many businesses have been told by their CPA that absent a reduction in revenue, the business is ineligible for the ERTC. While the law regarding ERTC provides that a twenty-percent (20%) drop in gross receipts (50% for 2020) is one basis that supports qualification for the ERTC, the law also provides another basis, even in the absence of a revenue reduction. Congress created a second test of eligibility, often referred to as the Business Impact Test. The Business Impact Test provides that a company may still qualify for the ERTC if the business experienced partial suspensions of business operations due to government mandates or orders that were put in place by various government authorities such as mayors, governors, legislatures, which were intended to avoid the spread of COVID, but negatively impacted businesses. Qualification under the Business Impact Test, takes into account more subjective issues such as compliance with government mandates, supply chain disruption, and other various COVID-related circumstances that negatively disrupted business operations.
With the help of the tax attorneys at Biz Head Law, businesses can quickly determine if they are qualified for this powerful incentive. In just 10 minutes or less, they are also provided with an estimate, which can be up to $7,000 per quarter for each of the first three quarters of 2021 and up to $5,000 for 2020 for a total of $26,000 per full-time W2 employee under the CARES Act.
“We’ve assisted business owners in legitimately claiming over $500 million and counting of Employee Retention TaxC Credits,” shares Biz Head Law CEO Kevin Chern. “We stand behind our clients’ claims and offer our clients 100% free audit protection. Not everybody qualifies, but if a client advances a good faith, factually supported claim for an Employee Retention Credit for their business, they deserve to have the professional support of the tax professional in the event they ever have to defend their position.” Trusted by thousands of business owners nationwide, Chern also shares how businesses can deal directly with real tax attorneys through Biz Head Law.
The process is simple. The first step involves speaking with Biz Head Law’s experienced tax attorneys either over the phone or via video conference to discuss eligibility for the tax credits and answer any questions or concerns. Businesses will then be asked to gather supporting documentation. If eligible, the law firm will assist in preparing an Amended Payroll Tax Return which must be submitted to the IRS for processing..
The law surrounding ERTC could change, once again, funds may not last forever. Biz Head Law encourages interested business owners to investigate eligibility and the process as soon as possible. No payment is required unless the business successfully collects an ERTC check.