Startups can claim this tax credit, too!
Congress included a provision for Recovery Start Up Businesses (RSBs) as part of the American Rescue Act. RSBs are defined as businesses that:
Maximize Your Employee Retention Tax Credit (ERTC)
No Up-front Cost to Apply
Companies can still qualify for up to $26,000 per employee. PPP loan recipients are eligible! Apply now, before time runs out.
The ERTC is a payroll tax refund.
The Employee Retention Tax Credit (ERTC) is a payroll tax refund from the US Treasury to provide aid to businesses that kept employees during the pandemic. The ERTC was enacted as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Qualified employers can claim up to $26,000 for each employee.
2020
Q2-Q4
$5,000
Per Employee
2021
Q1
$7,000
Per Employee
+
Q2
$7,000
Per Employee
+
Q3
$7,000
Per Employee
Total
$26,000
Per Employee
Claiming a Paycheck Protection Program (PPP) loan does not disqualify you from the ERTC.
Business owners have up to five years to file an amended tax return and retroactively claim the ERTC. Don’t miss out on this valuable tax tool to help your business regain its post-pandemic footing.
$52M
Total ERTC funds Strike has claimed for clients
$200,000
Average ERTC payout for qualified businesses
10 min
Average time it takes to qualify your business
Strike continues assisting companies with ERTC claims during moratorium.
Effective September 14, 2023, the IRS has declared a temporary halt on any new claims for ERTC. We understand the significance of adapting to these changes effectively and our team is committed to assisting your business with ongoing ERTC claims.
Connect with us to see how we can help.
This is an EITHER / OR test!
A business must satisfy only one of the following either/or conditions below in order to claim the credit:
A business must satisfy only one of the following either/or conditions below in order to claim the credit:
Reduction in revenues
2020: Gross receipts in any quarter must be less than 50% as compared to the same quarter of 2019.
2021: A drop of at least 20% in quarterly gross receipts in any quarter as compared to the same quarter in 2019.
OR
Full or partial shutdown
Reduction in operating hours
Supply chain disruptions
Inability to work onsite or visit clients
Distribution interruptions
Is My Business Eligible for the ERTC?
Businesses that meet the requirements and are eligible for both 2020 and 2021 could be looking at up to $26,000 per employee.
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Don't just take our word for it, hear what others have to say.
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I was introduced to Strike Tax Advisory in 2022 from a partner, and they told me I was eligible for several R&D tax credits because we had been building proprietary software for so many years. I worked with Ryan and Tom during this entire process. They filled out all of the paperwork for me, presented me with the numbers they could help me recuperate, and I got a substantial tax credit from their work. I highly recommend Strike to anyone who is looking to get R&D tax credits, these guys are the real deal!
Jeff M
Founder & CEO
It was a straightforward process with you and your team and the turnaround time was excellent. We appreciate that tremendously.
CFO
After we engaged Strike, their team went to work right away to gather detailed information and conducted interviews in a comprehensive evaluation of the qualifying R&D activities. We are very pleased with their professionalism and timely delivery of a quality R&D tax credit study report.
Peter L.
Principal
Strike did an excellent job identifying, documenting, and capturing the R&D tax credits for us. I sincerely appreciate the level of effort, professionalism, and client service the Strike team provided throughout this project.
Grant H.
CFO
$186,161
2020 Qualified Credit Amount
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$394,909
2021 Qualified Credit Amount
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$571,070
Total ERTC Payout
$0
2020 Qualified Credit Amount
$149,864
2021 Qualified Credit Amount
$149,864
Total ERTC Payout
$41,506
2020 Qualified Credit Amount
$96,801
2021 Qualified Credit Amount
$138,307
Total ERTC Payout
$121,811
2020 Qualified Credit Amount
$294,711
2021 Qualified Credit Amount
$416,522
Total ERTC Payout
$186K
2020 Qualified Credit Amount
$395K
2021 Qualified Credit Amount
$581K
Total ERTC Payout
?
Have more Questions?
Rightly so. There are many other considerations and exemptions, including what constitutes qualified wages, how to calculate health expenses, and what documentation the IRS requires for this very beneficial and wide-ranging refund.
Make sure you work closely with your tax advisor as there have been several iterations of the ERTC since its introduction.
Make sure you work closely with your tax advisor as there have been several iterations of the ERTC since its introduction.
Frequent Asked Questions about the ERTC
Why hasn’t my CPA or payroll company helped me claim the ERTC credits?
Financial service companies may be unaware that their clients qualify for the ERTC, or they may not want to wade into what seems like a complicated new tax credit. Repeated changes to the ERTC program have added additional barriers to claim the credit. Additionally, instead of trying to adapt to the changing ERTC rules, many CPAs and payroll companies have chosen to outsource ERTC claims for their clients. As a specialty tax company, we love claiming credits like the ERTC for our clients.
What is the deadline to file for ERTC?
Even though the ERTC officially ended on September 30, 2021 with the signing of the Infrastructure Bill, the Bill also allowed business owners the ability to retroactively claim the credit up to five years from when they filed their original return (extended from the previous 3-year statute of limitations).
As an owner, do my wages qualify in ERTC calculations?
The IRS clarified in Notice 2021-49 that business owners with a majority stake (51%) in a business cannot claim their wages when they apply for the tax credit. Attribution rules, which outline the legal principal owners of a business, must also be applied to determine if family members’ wages can be qualified wages too.
How do I apply for the ERTC?
If a business owner qualifies for the ERTC in 2020 or 2021 but hasn't applied yet, the only way to apply for the ERTC right now is to file an amended Form 941-X. With up to $26,000 per employee available, filing an amended return makes financial sense.
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