3 Ways to Take Advantage of the IRS' Generous Tax Credit

Have you heard of the Employee Retention Credit??

Most business owners have not.

It’s a little known stimulus credit for business owners – but it’s not getting nearly the media coverage of the PPP.

In fact, 75% of entrepreneurs and business owners have not heard of the Employee Retention Credit - or ERC. This little known credit can be used to reduce tax liability, potentially resulting in an almost 40% tax savings on the money you invest back into your business each year!

The tax credit is available to ease the burden of employment costs for small businesses that are preparing for rapid growth or re-hiring employees they have not.

I spoke with Kevin Marshall, CPA and President of Profitopia and asked him if it was saving anyone real money.

“Yes, we were able to get $492,000 for a client in Florida.?We’ve gotten smaller amounts like $9000 for a client – but to a restaurant owner, that money makes a real difference.?There is absolutely money out there for this tax credit, but no one knows about it.”

The Employee Retention Credit – or ERC – is similar to the PPP, but it’s not it's not coming from the SBA. This is a check from the IRS. It's not a forgivable loan. It is an actual payroll tax credit that available for all of 2020 and 2021.?There’s a five year window to file for the credit.

“As long as you have 500 or less employees and you paid them in 20, 20 or 2021, there's a high likelihood that there is money that's available.” Kevin shared.

There are three ways to qualify.

1. If your business was subject to a full or partial government shutdown, you would instantly qualify. Restaurants, gyms and dental offices are fantastic candidates.
2. If you were a new business that started after February 15th 2020.
3. You had a reduction in cash receipts.

Now is the time to bring this up with your tax professional – it’s a little known avenue that can add to your bottom line and help fuel your business’ future growth.

Here’s to your wealth!?