Accounting, Bookkeeping, Invoicing Blog Posts

Employee Retention Credit fees are fees that are paid to a CPA, tax expert, ERC specialist, or other expert that claims the ERC on a business’s behalf.

While the ERC program does have a few similarities to grant programs, there is not an actual ERC grant. Instead, the ERC is a refundable tax credit available to eligible small businesses that kept employees on payroll throughout 2020 and 2021.

To qualify for ERC in 2020, businesses must have paid qualified wages to employees from March 13, 2020, through December 31, 2020. To qualify for ERC in 2021, businesses must have paid qualified wages to employees during the period of January 1, 2021, through September 30, 2021.

You may qualify for an ERC loan if you have a valid and verifiable ERC claim filed with the IRS. In most cases, lenders will not look at factors like personal credit score or business revenue, but this varies based on the company you opt to work with.

If you have questions about the employee retention credit, you’re not alone. That’s why we’ve created this employee retention credit FAQ guide to answer all of your questions.

You can claim the R&D credit yourself by completing and filing the appropriate tax forms with your federal income tax return. However, due to the complexities of the tax credit, many business owners opt to use tax credit software or services to simplify the process.

Yes, you can claim the R&D tax credit every year, provided you have qualified research and development expenses. In order to claim the credit, you must meet all requirements of the IRS and you must file the appropriate forms with your income tax return.

The research and development tax credit (R&D credit) is a general business credit available to businesses that created or improved a product or process. Businesses that are eligible to receive the R&D credit must have participated in qualified R&D activities as outlined under Section 41 of the IRS Tax Code.

The amount of the R&D tax credit varies by a number of factors. Generally, a business should expect to receive 7% to 10% of qualified research and development expenses to be used toward federal tax liability.

You can get an EIN immediately by applying online via the IRS’s website. All other application methods have a waiting period of at least four business days after applying.