3 Reasons To Apply for the ERC Sooner Rather Than Later

3 Reasons To Apply for the ERC Sooner Rather Than Later

If you have a small- to medium-sized business and haven’t applied for an Employee Retention Credit (ERC) yet, you could be missing out on money that Congress reserved to put back into your pocket. While finding pens that wander away from the front desk can wait, your ERC refund needs to be tackled today. It’s time to take the initiative and apply for the ERC.

Below, we’ll discuss the three reasons why you need to get your small business tax refund rolling right now.

#1. Your Business Could Use the ERC

The Employee Retention Tax Credit was an initiative meant to encourage businesses to keep employees on their payroll during COVID-19. In fact, up to 80% of small businesses could qualify for the ERC refund, but so far, only a fraction have applied. If you kept employees on your payroll despite economic hardship or temporary business closure, you could be entitled to money from the ERC. And let’s face it, who doesn’t need the extra money right now?

It’s no secret that businesses are still hurting from the aftermath of the pandemic, so any government aid available should be used to keep these businesses — including yours — not just alive but thriving.

If your business meets the qualifications (and many do), you can get your refund and use it in whatever way is needed most. This could be anything from hiring more staff, training your existing employees, or improving your product or service to keep your business ahead of the competition.

The ERC is not a loan, which means you don’t have to pay back any money that comes from your refund. This is cash specifically meant to go towards your business expenses.

#2. ERC Restrictions and Payouts May Tighten at Any Time

Currently, the ERC offers up to $21,000 per employee kept on the payroll for 2021, $7,000 each quarter from Q1-Q3 2021, on top of an additional maximum amount of $5,000 per employee kept on the payroll for 2020. This is potentially tens of thousands of dollars that can be refunded to your business — if you apply before the funds are used up.

Judging from the numerous guidelines and policy updates that have already been applied, the ERC may not be available for most small businesses for much longer. Since the ERC has not been extended to cover payroll for 2022, there may not be any additional cash added to the funds that are already in place.

Additionally, as the funds run out, there may be a decrease in the refund amounts available. As more businesses become aware of the ERC, your chances of applying in time to get the full amount owed to you, decrease.

#3. Ensure the Availability of an ERC Specialist

As awareness increases, the availability of ERC specialists will fill up. Without an ERC specialist, you may find yourself with a returned or denied application because of a multitude of errors due to a lack of experience in the field.

If you begin the process of claiming your Employee Retention Credit with the help of an ERC specialist, you’ll get your refund that much sooner, without the hassle. You can also read up on reviews and ratings to make sure you pick the right professional for the job and avoid hiring mistakes that could cost you.

Get your ERC With Innovation Refunds

At IR, we know how important it is for small businesses to grow during these tough times, so we take your ERC seriously. Our team of experts is ready to help you every step of the way so you can get your cash before it’s too late.

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