Many of AAFCPAs’ clients are having success reassessing their eligibility for the Employee Retention Tax Credit. “IRS anticipates that approximately 70%-80% of small and medium businesses (as well as tens of thousands of charities) were good candidates for taking the...
Many of AAFCPAs’ clients are having success reassessing their eligibility for the Employee Retention Tax Credit.
“IRS anticipates that approximately 70%-80% of small and medium businesses (as well as tens of thousands of charities) were good candidates for taking the ERC,” according to Forbes.com. “The reality is, to date the actual numbers of businesses and charities applying for the ERC is far below that. Small and medium businesses (as well as tax-exempts/charities) are leaving billions of dollars on the table.”
If you have not yet reassessed your eligibility, AAFCPAs urges you to review some of these resources:
In 2020 the credit value was up to $5,000 per employee, and in 2021 it was up to $7,000 per employee per quarter. A company with 20 employees could be looking at as much as $100,000 in 2020 and $140,000 per quarter in 2021, for a combined total of up to $520,000- in credits (so long as the organization qualifies for all quarters).
AAFCPAs recommends that eligible companies file as soon as practical to prevent further delays with your credits. The IRS is currently projecting that processing times could take up to a year.
As with all tax credits, there are significant rules and potential pitfalls. If you have any questions about how these provisions affect your organization, please contact Courtney McFarland, CPA, MSA, at 774.512.4051, cmcfarland@aafcpa.com; or your AAFCPAs Partner.
Author Bio
More Articles
California and Colorado will begin taxing many SaaS transactions on January 1, 2027. Software companies should start evaluating the sales tax implications now.
The systems and processes that helped your organization reach one stage of success are not always the ones that support the next.
Beginning in 2026, eligible Massachusetts pass-through entities can elect the new Chapter 63E PTE excise. Business owners subject to the state's surtax should understand how...
