The ERTC: What a Tax Credit Company Can Do for You
The current tax season is in full swing and businesses around the country are preparing to get their filings submitted in order to recoup their losses over the previous two years. The Employee Retention Tax Credit (ERTC) is valued at an estimated $8 trillion for those who qualify with maximums being an astounding $100,000 over the last two quarters of the previous year alone.
As a tax credit company, ERTCFiling.com is highly specialized in solving your most complex business tax issues including assessing your financial situation to ensure that you gain the most out of your efforts. We know that when it comes to running your company, nothing is more important than your expenses, revenue, and cost per employee.
In today’s article, we will be discussing the myriad of benefits of how the ERTC and a knowledgeable tax credit company go hand in hand.
What is a Tax Credit Company?
A tax credit company specializes in the complexities of tax laws. They retain a staff of highly qualified tax professionals who stay abreast of the latest rules, regulations, and up-to-date changes to keep your business running and operating within federal guidelines.
Highly focused on business tax law these companies work persistently to help you acquire everything you need to take advantage of financial incentives that reward you. Research shows that employers in small businesses typically gross around $60,000 per year and some bring in upwards of $250,000.
The federal government has set aside funds over the past several decades to encourage employers to hire from a diverse pool of applicants in the way of refundable tax credits.
The following is a list of commonly available for businesses of various sizes with many having carryforward eligibility:
- Work Opportunity Credit
- Federal Empowerment Zone Credit
- Employee Retention Tax Credit
- Indian Employment Credit
- Credit for Small Employer Pension Plan StartUp Costs
- Credit for Small Employer Health Insurance Premiums
While many business owners realize a whole host of savings at the end of each year, having a tax credit company on your side can net you between $5,000 and $50,000 per quarter depending upon guidelines such as sales revenues, specified time periods, and the particular credit that you choose to claim.
How Do Tax Credits Work for Businesses?
Tax credits work to offset the costs of maintaining typical expenses that come with running a business. Everything from payroll to new hire costs to inventory can start to eat into your monthly, quarterly, and annual revenues.
Once your business files its quarterly taxes, these credits reduce your liability for every dollar that you have spent over the past year. Lookback provisions also allow you to claim specific credits such as the Employee Retention Tax Credit in a retroactive manner which reflects your earnings over a three-year time frame.
Acquiring enough deductions can bring your tax liability to the lowest possible percentage, allowing you to focus your time and capital on business endeavors that increase your revenue.
What Businesses Qualify for Tax Credits?
All businesses operating under a certain capacity can potentially qualify for business tax credits. However, knowing which ones your business qualifies for can add a dramatic uptick in terms of your cash flow, annual savings, as well as peace of mind.
When it comes to the ERTC, a wide range of businesses meet the standard requirements to receive funds including those who have met special conditions such as prior PPP loan recipients and those with annual receipts under $1 million dollars.
If you are the owner of one of the following business types then you can save money with credits like the Employee Retention Tax Credit.
- Small business employer
- Large business with up to 500 employees
- Recovery business
- LLC, S-Corp, Partnership, Corporation
As each type of business structure falls under its own set of guidelines, it’s important to speak with a tax specialist to ensure that you are submitting the proper documentation.
CPA vs Tax Credit Company vs Financial Advisor
Having a trusted financial professional is paramount to enduring success as a business owner. However, when relating to the nuances of ever-changing tax law, the wrong advisor can cost you millions of dollars in avoidable losses.
In the world of finance and numbers, everyone has a primary role. Although most credentialed professionals are versed in taxes to a degree, having someone who is specifically trained in all areas of tax regulations can prove to be of great benefit.
| Certified Public Accountant | Tax Credit Company | Financial Advisor |
| Financial accreditation required | Annual certification in tax updates | Generalized among many finance professionals |
| Knowledgeable in many areas of accounting and tax law | Specific tax training certified by the Internal Revenue Service tax codes | Limited tax knowledge in some areas |
| Fees based on all services | Fees based on forms and complexity | Fees based on investment regardless of overall profit |
| Handles a wide range of clients | Maintains one central specialty | Capacity for a variety of clientele |
| Efficient bookkeeping of financial records | Caters to clients in all tax situations | Geared towards financial investing |
Benefits of Claiming the ERTC for Your Business
As a part of the Investment, Infrastructure, and Jobs Act, the Employee Retention Tax Credit gives a distinct advantage in leveraging your tax credits while maximizing tax deductions in the same year.
Our clients have enjoyed the significant perks of adding the ERTC to their business tax returns. Benefits such as the reimbursement of $33,000 per employee, the ability to recoup lost revenue, and an offset of additional payroll expenses during downturns.
A tax credit company can provide your business with trusted solutions while using decades of expertise to prepare you for ongoing financial success.
Conclusion:
Meeting your income tax needs is the backbone of tax credit companies around the globe. At ERTCFiling.com we recognize the time and effort put into growing a profitable business. If you would like to know more about how a tax credit company can contribute to your long term success, then speak with one of our qualified tax advisors today.