Is the Employee Retention Tax Credit Real?

The Employee Retention Credit (ERC) is a real incentive offered by the CARES Act to encourage companies to keep their employees on their payroll. This credit is linked to the payroll and is calculated quarterly. Companies that apply for the ERC simultaneously with their payroll tax returns can reduce the required payroll tax deposits by the amount of the credit. The ERTC is a refundable credit that companies can request on qualifying salaries, including certain health insurance costs, paid to employees.

If you're wondering if you qualify for the ERC, Leyton is an international consulting firm that can help you determine your eligibility and provide you with a free consultation. With the support of our financial partner, we can accelerate your credit with an average delivery time of two weeks. All documentation goes through two rounds of quality control and we can analyze the interactions between your PPP loans and other credits to help you ensure IRS compliance and reduce auditing risk. We will provide you with a detailed summary report to confirm your credit per employee, and our team of tax lawyers can provide you with the necessary legal defense in the event of an audit. The hospitality industry was one of the most affected by COVID-19, and Lark Hotels had to close all its operations with no reopening in sight.

Find out how they benefited from applying for the employee retention credit. If you have any questions or need more information, our in-house team of highly experienced scientists, engineers, tax advisors and lawyers will be happy to help you get the most out of your ERC efforts. The Consolidated Appropriations Act expanded the requirements for eligibility for the ERC to include companies that applied for a loan under the Paycheck Protection Program (PPP), including borrowers from the initial round of the PPP who were not originally eligible to apply for the tax credit. The IRS has warned employers to be wary of third parties who advise them to apply for the employee retention credit (ERC) when they don't meet the requirements. It's important to note that businesses that work with a tax professional may not realize that their advisor has already performed an “eye test” for eligibility. Additionally, businesses that didn't apply for the credit when filing their original returns can file amended tax returns.

Improperly claiming the ERC could result in taxpayers having to repay the credit, along with penalties and interest. The Employee Retention Tax Credit (ERTC) program has officially expired, but this does not affect a company's ability to apply for it retroactively. The notice includes guidance on how employers who received a PPP loan can retroactively apply for the employee retention tax credit. If a company filed an income tax return deducting qualifying wages before filing an employment tax return requesting the credit, they must file a modified income tax return to correct any exaggerated wage deductions. Employers who use a Professional Employers Organization (PEO) or Certified Professional Employer Organization (CPEO) do not file an individual 941 on their behalf, so it's important that they understand how they would reconcile this information and receive credit. Because ERC legislation is changing, Leyton dedicates a team of tax professionals to ensuring that your claim complies with all new IRS guidelines.

Denise Lefler
Denise Lefler

Hardcore travel specialist. Extreme bacon lover. Freelance twitter lover. Certified coffee guru. General pizzaaholic. Certified web aficionado.