Are Accounting Firms Eligible for Employee Retention Credit (ERC)?

Key Takeaways:

• Accounting firms may be eligible for the ERC if they meet specific criteria related to the impact of COVID-19 on their business operations.

• There are common misconceptions about ERC eligibility that need clarification to ensure firms don’t miss out on potential refunds.

• ERTC Express provides a step-by-step approach to help accounting firms assess eligibility and maximize their ERC benefits.

• Understanding the eligibility criteria, application process, and documentation is essential for a successful ERC claim.

• Accounting firms should act promptly as there are deadlines for claiming the ERC, but professional guidance can simplify the process.

Are Accounting Firms Eligible for ERC Refund

Let’s get straight to the point. The ERC is a refundable tax credit that was designed to encourage businesses to keep employees on their payroll during the COVID-19 pandemic. Now, you might be wondering, “Can my accounting firm qualify for this?” The answer is: possibly. The eligibility for ERC isn’t limited by the type of business but rather by the impact the pandemic had on your operations.

Most importantly, to qualify, your firm must have experienced either a full or partial suspension of business operations due to government orders or a significant decline in gross receipts during 2020 or 2021. And yes, this includes professional service firms like yours. There are specific criteria to meet, and it’s not a one-size-fits-all scenario. But don’t worry, we’ll walk through these together to ensure you have a clear understanding of whether you can claim this credit.

Several government restrictions that have affected accounting firms include:

• Requirements for enhanced cleaning and disinfecting practices;
• Social distancing measures and limitations on office capacity;
• Disruptions in the supply chain affecting office supplies and equipment;
• The shift towards remote work arrangements; and
• Mandatory temporary closures of physical offices.

Common Misconceptions about ERC Refund for Accounting Firms

Before we go further, let’s clear the air on some common misconceptions. Some firms believe that because they are in the professional services sector, they automatically don’t qualify for the ERC. This is not true. Another myth is that if your firm took a Paycheck Protection Program (PPP) loan, you can’t take the ERC. Again, this is not the case—although the rules for how PPP and ERC intersect can be complex, they are not mutually exclusive.

1. Only businesses directly impacted by the pandemic are eligible for ERC: This isn’t accurate; professional service firms like accounting firms and law firms can also qualify for the ERC.

2. Receiving a PPP loan disqualifies you from ERC eligibility: This is incorrect. Firms can take advantage of both the PPP and ERC, with meticulous planning needed to avoid overlapping claims.

3. The ERC application process is overly complex with limited rewards: The complexity of the ERC application is offset by substantial potential benefits, making it a valuable opportunity to consider.Understanding the truths behind these misconceptions can open the door to substantial tax savings that you might have otherwise overlooked. Therefore, let’s make sure we’re on the same page and not leaving money on the table that could support your firm’s growth and stability.

So, if you’re thinking, “My accounting firm has faced challenges during the pandemic,” it’s time to look closer at the ERC. The next step is to explore how to maximize your ERC refund. That’s where ERTC Express steps in. With a focus on simplifying the process and ensuring you get every dollar you’re entitled to, ERTC Express can be your partner in this journey.

How ERTC Express Helps Accounting Firms Maximize ERC Benefits

ERTC Express is designed to make the ERC claim process as smooth as possible for accounting firms. With a team of experts who are well-versed in the intricacies of tax credits, ERTC Express offers a personalized service to ensure that your firm’s unique circumstances are considered. But what exactly does this process involve?

Step-by-step Guide: How ERTC Express Optimizes Your Refund

Step 1: ELIGIBILITY

The first step is to determine if your firm is eligible for the ERC. This involves a detailed analysis of your firm’s operations and financial data to assess the impact of COVID-19.

Step 2: PROCESSING

Next, ERTC Express helps you gather the necessary documentation and accurately calculate the credit amount. This ensures that you claim the correct amount and remain compliant with IRS guidelines.

Step 3: RECEIVE YOUR FUNDS

Finally, ERTC Express assists with filing the claim and tracking its progress until you receive your funds. They stand by you every step of the way to address any questions or concerns that arise.

By taking this structured approach, ERTC Express ensures that your claim is not only compliant but also optimized for the maximum benefit available to your firm.

Get Maximum Accounting Firms ERC Refund with ERTC Express

Now, you might be wondering, “Why should I trust ERTC Express with my firm’s ERC claim?” It’s a valid question, and the answer lies in the unique combination of expertise, compliance, and customer service that ERTC Express brings to the table.

• IRS Compliance: ERTC Express ensures that your claim meets all IRS requirements, minimizing the risk of errors and potential audits.

• Trusted by the AICPA: As a service provider that has earned the trust of the American Institute of CPAs, you can be confident in the quality and reliability of their services.

• U.S.-Based CPAs: ERTC Express employs a team of certified public accountants based in the U.S., providing you with knowledgeable professionals who understand the intricacies of U.S. tax law.

• Power of Three – Audit Defense, Refund Maximization: Their approach focuses on defending your claim in case of an audit, ensuring accurate calculations for maximum refunds, and providing comprehensive support throughout the process.

• Refund Optimization: Their methodical strategy guarantees the full entitlement of eligible funds, ensuring your firm secures the maximum possible refund.

Don’t let the opportunity slip by – explore your eligibility for the Employee Retention Credit, clear up any misconceptions, and take advantage of the ERC to strengthen your accounting firm’s financial future. With ERTC Express, you’re not just getting a service; you’re gaining a partner that is committed to securing the financial benefits your firm deserves.

Frequently Asked Questions (FAQ)

What makes an accounting firm eligible for the ERC?

An accounting firm is eligible for the ERC if it experienced a full or partial suspension of business operations due to government orders related to COVID-19 or if it saw a significant decline in gross receipts during the specified periods in 2020 or 2021. Each situation is unique, so it’s essential to review your firm’s specific circumstances to determine eligibility.

Can accounting firms claim ERC if they received a PPP loan?

Yes, accounting firms that received a PPP loan can still claim the ERC. However, it’s crucial to avoid “double-dipping,” which means you cannot use the same wages for both PPP loan forgiveness and the ERC. ERTC Express can help navigate these rules to ensure you maximize your benefits without violating any regulations.

What are the deadlines for accounting firms to apply for the ERC?

The deadlines for claiming the ERC are tied to the filing of your federal employment tax returns. Generally, you have three years from the date the original tax return was filed or two years from the date the tax was paid to file an amended return and claim the ERC. Given these time frames, it’s advisable to act sooner rather than later to ensure you don’t miss out on this opportunity.

What steps should an accounting firm take to maximize its ERC refund?