The Benefits of Working with an Employee Retention Credit Originator
The pandemic, labor shortages, and rise of inflation have made the last two years particularly challenging for small to medium-sized businesses. In a 2021 survey conducted by researchers at Harvard Business School, approximately 75% of small business owners reported expected to run out of on-hand cash in two months or less.
So, what can business owners do to recover from the financial hardships caused by COVID-19? One little-known opportunity is to take advantage of the Employee Retention Credit (ERC). The ERC helps businesses get cash flowing back into their business so they can scale their company, expand services, and invest in employees.
Below, we’ll talk about the origin of the ERC, its benefits, who qualifies, and how hiring a skilled ERC originator can help your business collect this specific tax credit.
The ERC: Part of the CARES Act
Under the CARES Act, employers who kept their employees on their payroll during the pandemic may be eligible to receive a tax credit. This credit is equal to 70% of wages paid, with a cap of $10,000. This, in turn, is $5,000 per employee for the full year of 2020 and $7,000 per employee for 2021’s first, second, and third quarters.
The ERC has defined eligibility qualifications, including having at least five employees on your payroll. Additionally, attention to detail is imperative when completing the ERC application — these common mistakes may delay eligible payments from the IRS.
Even if you have a certified public accountant (CPA) on your payroll, your business could benefit from using an ERC provider to apply for the ERC.
What does an ERC originator do?
An ERC originator compiles and thoroughly reviews every application to make sure there is no missing documentation. Their job is to make sure that your business gets the money it qualifies for from the US Treasury. Because they are ERC originators, they’re experienced in the field and aware of the changes, limitations, and deadlines surrounding your business’ ERC claim.
How is an ERC originator different from a CPA?
An ERC originator specializes in understanding a series of payroll tax filings that many CPAs may be unfamiliar with or not completely confident in using. ERC originators are highly qualified tax professionals who understand what it takes to process an eligible company’s refund. Any ERC originator worth looking into will have years of tax code and accounting experience.
Many have graduate degrees, which means your business (if eligible) will receive its ERC with less hassle and fewer surprises. Working with an ERC originator helps make sure your business aims to get its maximum refund.
Who is Innovation Refunds?
Innovation Refunds (IR) is a highly-rated team of CPAs, attorneys, and business professionals who work hard to support the growth of small and medium-sized businesses. Founded by CEO, Howard Makler, IR assists clients in filing and acquiring ERC refunds from the US Treasury.
We pride ourselves on treating every business as our own by providing highly qualified advice and services daily. At IR, we believe all eligible businesses should have the opportunity to unlock access to capital they didn’t even know existed.
How can businesses use their ERC refund?
When thinking about the ERC, you may have some ideas of how you want to use your refund. To start, you want to make sure to pay off any debts that your company has incurred since COVID. Once these are taken care of, you can start thinking about new marketing initiatives, hiring more employees, and growing your line of products or services.
By working with an ERC originator like IR, you can help make sure your company is set up for the future. We’ve already helped 7000+ companies claim more than $2 billion in refunds, and we can help your business find out if it may be eligible and get the refund it deserves.
With the ERC, small and medium-sized businesses everywhere have the opportunity to recover from the pandemic and empower their business for growth. By starting an application, you can find out if your business may be eligible to submit an ERC claim so you can take the next step towards preparing your business for financial uncertainties.