Documents Needed To Get Your Employee Retention Credit Application Approved

If you know about the Employee Retention Credit (ERC), then you may know the deadline to file your claim with the IRS is approaching.

The ERC is still available for you to apply to the qualified quarters of 2020 and 2021 (if your business is eligible), but mistakes in the paperwork could make you miss out! The ERC application process can be lengthy and complicated. From understanding qualifications, gathering your documents, and tracking the status of your refund, the process may feel overwhelming.

Filing your ERC application through a network of tax professionals — like ours at Innovation Refunds (IR) — takes the workload off your shoulders while making the entire process as seamless as possible. Below, we’ll discuss the documents we would need to process your claim, so you can do your part headache-free.

How To Apply for the Employee Retention Credit — Required Documents

The IRS requires certain documents from your business in order to process your ERC claim. You can check the 102-page IRS ERC Guidance for more information about the necessary documents, but we’ve shortened it up a bit for your convenience.

IRS Form 941: Employer’s Quarterly Federal Tax Return

The employer’s quarterly federal tax return includes income taxes, Social Security tax, or Medicare tax withheld from employee's paychecks. To qualify for the Employee Retention Credit 2021 and 2022, you need to include all of this documentation from each eligible quarter.

Monthly Payroll Ledger

This is the ledger you’ve used to keep track of payment information for each employee, contractor, or business entity that received funds from your payroll department. You’ll need the ledger from every qualifying quarter.

Monthly Group Healthcare Statement

If applicable to your business, this document would show how much you paid in insurance premiums for your employees during each qualifying quarter.

PP1 & PPP2 Loan Forgiveness Applications

If you applied for the first rollout of the Payroll Protection Program (PPP) and/or the extension of the PPP, you must include this documentation to prove that your ERC is not using the same deductions.

Government Order To Shutdown or Suspend Operations

If applicable, you may need to show that your business operations were compromised due to the pandemic.

Claiming the Employee Retention Credit With Innovation Refunds

IR takes care of the tedious process of preparing your documents so your refund can be approved by the IRS the first time around. One huge benefit of working with our tax professionals is that it is their job to review all submitted documents and double-check that your business receives the full ERC refund that it is lawfully entitled to claim.

You’ll receive consistent communication while your assigned team is working on your claim. When ready, we’ll file your claim on your behalf in one turnkey package to minimize risks associated with the ERC filing process. If you have any questions or concerns, Innovation Refunds will be there ready with answers and suggestions.

Why Should You Choose Innovation Refunds To Help With Your Employee Retention Credit Application?

Innovation Refunds believes every eligible small to medium-sized business deserves to not only get back on its feet after the devastating effects of COVID-19, but to thrive now and in the future.

At Innovation Refunds, our network of tax professionals aim to get your business the maximum refund amount it is eligible to receive. However, the deadline to apply for the maximum refund is approaching. Contact us today to see if your business qualifies for ERC assistance!

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