Accounting, Bookkeeping, Invoicing Blog Posts

To qualify for ERC in 2020, businesses must have paid qualified wages to employees from March 13, 2020, through December 31, 2020. To qualify for ERC in 2021, businesses must have paid qualified wages to employees during the period of January 1, 2021, through September 30, 2021.

You may qualify for an ERC loan if you have a valid and verifiable ERC claim filed with the IRS. In most cases, lenders will not look at factors like personal credit score or business revenue, but this varies based on the company you opt to work with.

If you have questions about the employee retention credit, you’re not alone. That’s why we’ve created this employee retention credit FAQ guide to answer all of your questions.

You can claim the R&D credit yourself by completing and filing the appropriate tax forms with your federal income tax return. However, due to the complexities of the tax credit, many business owners opt to use tax credit software or services to simplify the process.

Yes, you can claim the R&D tax credit every year, provided you have qualified research and development expenses. In order to claim the credit, you must meet all requirements of the IRS and you must file the appropriate forms with your income tax return.

The research and development tax credit (R&D credit) is a general business credit available to businesses that created or improved a product or process. Businesses that are eligible to receive the R&D credit must have participated in qualified R&D activities as outlined under Section 41 of the IRS Tax Code.

The amount of the R&D tax credit varies by a number of factors. Generally, a business should expect to receive 7% to 10% of qualified research and development expenses to be used toward federal tax liability.

You can get an EIN immediately by applying online via the IRS’s website. All other application methods have a waiting period of at least four business days after applying.

Unfortunately, there is no way to expedite the ERC refund process. You can avoid potential delays by ensuring that your Form 941-X is filled in correctly, including ERC refund calculations. You may also reach out to reputable ERC funding companies to learn about ERC advances and funding programs, although fees will apply.

The employee retention tax credit, or ERC, is a real tax credit available to qualified small business owners. This refundable tax credit could be filed on quarterly returns in 2020 and 2021. Small business owners that didn’t know about this credit can retroactively receive a refund by filing amended tax returns.