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Text Content

DIDN'T APPLY FOR THE ERC BUSINESS TAX CREDIT? HERE ARE 4 IMPORTANT QUESTIONS YOU
SHOULD ASK YOUR ERC PROVIDER - READ BELOW

Maximize Credit. Minimize Disruption. Be Audit-Ready.

US based businesses that suffered revenue losses or experienced at least a
partial suspension of operations due to COVID-19 government orders could qualify
for up to $26,000 per employee




REQUEST A MEETING

Didn't Apply for the ERC Business Tax Credit? Request a Meeting with Experian
Employer Services to See if You Qualify and Start the Application Process

Special Incentive: Meet with Experian Employer Services and You'll Receive a $50
Visa Card!

 * First Name *
 * Last Name *
 * Company *
 * Job Title *
 * Business Email *
 * Business Phone *
 * Industry * --Select-- High Tech Financial Services Automotive Education
   (Colleges/Universities) Non-Profit Entertainment Consumer Goods Healthcare
   Hospitality Retail Other
 * Number of US Employees * --Select-- 1-4 5-9 10-49 50-99 100-249 250-499
   500-999 1000-2499 2500-4999 5000-9999 10,000+
 * Select State * --United States-- Alabama Alaska Arizona Arkansas California
   Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii
   Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland
   Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada
   New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio
   Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota
   Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin
   Wyoming --Canadian Provinces-- Alberta British Columbia Manitoba New
   Brunswick Newfoundland Northwest Territories Nova Scotia Nunavut Ontario
   Prince Edward Island Quebec Saskatchewan Yukon Territory --Australia
   Territory-- Australian Capital Territory New South Wales Northern Territory
   Queensland South Australia Tasmania Victoria Western Australia
 * Was your business negatively impacted by Covid 19? * --Select-- Yes No
 * Did you apply for the PPP Loan? * --Select-- Yes No
 * By accessing this content, you are Opting-In to future correspondence from
   Experian Employer Services and KPI Analytics, Inc. and agreeing to the terms
   and conditions of the respective privacy policies, Privacy Policy , Privacy
   Policy
 * 


FOUR QUESTIONS TO ASK AN ERC PROVIDER

The Employee Retention Credit (ERC) is one of the largest tax credit programs
for business relief provided by Congress during the COVID-19 pandemic and could
provide thousands of dollars to support your business through the detrimental
impacts of the pandemic. This credit is complex and requires an extensive,
well-developed process to prove and document eligibility and remain compliant.
However, in spite of its complexity, employers should seriously consider this
credit as it could be worth as much as $26,000 per employee spanning 6 quarters
of 2020 and 2021.

The Employee Retention Credit (ERC) is one of the largest tax credit programs
for business relief provided by Congress during the COVID-19 pandemic and could
provide thousands of dollars to support your business through the detrimental
impacts of the pandemic. This credit is complex and requires an extensive,
well-developed process to prove and document eligibility and remain compliant.
However, in spite of its complexity, employers should seriously consider this
credit as it could be worth as much as $26,000 per employee spanning 6 quarters
of 2020 and 2021.


BACKGROUND ON THE EMPLOYEE RETENTION CREDIT

Before speaking with a third-party ERC provider to manage your claim, it is
important to understand the background and purpose of this tax credit. The
program was established under the Coronavirus Aid, Relief, and Economic Security
Act (CARES) Act, encouraging businesses to keep employees on their payroll by
providing a refundable payroll tax credit to offset the cost of certain wages.
Originally, the CARES Act prohibited employers from receiving both a Paycheck
Protection Program (PPP) loan and the ERC, but this provision was amended to
allow businesses to claim the ERC even if they received a PPP loan.

The final update to the ERC was the Infrastructure Investment and Jobs Act which
ended this program in November 2021, limiting the credit to the 2nd, 3rd, and
4th quarters of 2020 and the 1st, 2nd, and 3rd quarters of 2021. However, even
though the credit expired after Q3 of 2021, businesses can still retroactively
claim the ERC for eligible quarters if they match the right criteria. Many
businesses choose to outsource filing this claim as the process can be complex
and eligibility may be difficult to determine on their own. Before deciding on
an ERC provider, ask these questions.


1. HOW LONG HAS YOUR PROVIDER BEEN IN THE TAX CREDIT MARKET?

While many have a working knowledge of the ERC, some companies may not have a
history of supporting employers in claiming tax credits and working with the IRS
to sustain tax credits. No firm can say they were managing ERC claims prior to
2020, but reputable firms have been supporting clients in other tax credits
similar to the ERC. Additionally, the longevity of a provider may be important
to consider. You should be concerned if ERC is their only business Will this
vendor be around in 2 or 3 years? Will this vendor be available to support you
in the event of an IRS audit of your credit or is the vendor only motivated to
help you claim the credit now with no concern for the future?


2. HOW DO YOU PROVE MY ELIGIBILITY?

This is the most important question to ask. Experian Employer Services conducts
an extensive process to determine and document eligibility and is something we
perform prior to calculating any credit. We look at both qualification methods
(gross receipts decline and partial suspension of operations) and gather data
from internal and external sources to sustain any claims. Any conclusions are
documented in the file based on expectations of what an IRS auditor will likely
need to see in the event of an audit.


3. IS YOUR PROVIDER LOOKING AT THE AGGREGATE GROUP?

This credit, if done correctly, requires the entire aggregate group to be
considered when determining a decline in gross receipts or the number of
full-time employees. Although filed on form 941X on a per entity basis, the ERC
requires that the aggregate group (as defined by the Internal Revenue Code and
Treasury Regulations) be considered. For example, if two or more entities share
common ownership, they may be considered a single employer when determining key
aspects and requirements of the ERC. This may come as a surprise to many people
seeking the credit, as the PPP used affiliation rules provided by the Small
Business Association whereas the ERC applies the Internal Revenue Code
definition of aggregation. The standards are similar but different. This is a
common pitfall when looking to capture this credit.


4. DO YOU CONSIDER MY FULL-TIME EMPLOYEES VS PART-TIME EMPLOYEES?

One of the first steps in the process is looking at employee counts in order to
determine whether an employer is considered a large or small employer,
specifically what your employee counts were in 2019. Many people think that
because large employer or small employer status is based on full-time employees
alone, the credit only applies to full-time employees and will calculate it as
such. When doing so across a large part-time population, this could be leaving
valuable dollars on the table. Furthermore, if the analysis is done incorrectly
when determining large or small employer, the calculation could be completely
incorrect.


MANAGING YOUR EMPLOYEE RETENTION CREDIT CLAIM

Not only are these questions important to ask any ERC provider, they also shed
light on the complexities of the tax credit and explain why many businesses
overlook this powerful financial opportunity. Experian Employer Services takes a
holistic approach to the ERC, helping the client every step of the way. Starting
from initial qualification and to delivery of calculation, we work in tandem to
ensure that the Employee Retention Tax Credit is understandable and
comprehensive. The most important step determining eligibility starts with
basic, fundamental information. If you are interested in learning more about
ERC, you can start with this form at Experian Employer Services.

The instructions to Form 941-X state:

 * Is There a Deadline for Filing Form 941-X? Generally, you may correct
   overreported taxes on a previously filed Form 941 if you file Form 941-X
   within 3 years of the date Form 941 was filed or 2 years from the date you
   paid the tax reported on Form 941, whichever is later. You may correct
   underreported taxes on a previously filed Form 941 if you file Form 941-X
   within 3 years of the date the Form 941 was filed. We call each of these time
   frames a “period of limitations.” For purposes of the period of limitations,
   Forms 941 for a calendar year are considered filed on April 15 of the
   succeeding year if filed before that date.

That last sentence is the key, “For purposes of the period of limitations, Forms
941 for a calendar year are considered filed on April 15 of the succeeding year
if filed before that date.” This rule is derived from Section 6513 of the Code
in which subsection (c) “Return and payment of Social Security taxes and income
tax withholding,” includes the rule that, “(1) If a return for any period ending
with or within a calendar year is filed before April 15 of the succeeding
calendar year, such return shall be considered filed on April 15 of such
succeeding calendar year.”

This means that while the Form 941 for the second quarter of 2020 was originally
due on 7/31/2020; the third quarter was due on 10/31/2020; and the fourth
quarter was due on 1/31/2021, all of those returns are considered filed on
4/15/2021, setting the three-year statute of limitations for amending any of
those returns as 4/15/2024. (The instructions to Form 941-X explain, “any
corrections to the employee retention credit for the period from March 13, 2020,
through March 31, 2020, should be reported on Form 941‐X filed for the second
quarter of 2020.”)

All of this being said, it’s not advisable to wait until the very end. Learn
more about our solutions for tax credits including the ERC.






APPLY WITH CONFIDENCE:

Experian Employer Services, the leader in tax credit services, has assisted more
than 2000 organizations in navigating the complex landscape of ERC tax credits.

Maximize Credit. Minimize Disruption. Be Audit-Ready. Leverage the deep
expertise and strict standards utilized by Experian Employer Services to ensure
maximum benefit and audit preparedness with minimal business disruption.


ADVANTAGES OF ERC TAX CREDIT SERVICES
WITH EXPERIAN EMPLOYER SERVICES


TRUSTED ADVISOR

Experian Employer Services brings together a skilled team with years of
specialty tax credit experience, delivering unmatched service, trusted
expertise, and client-inspired innovation.


RESPONSIBLE GUIDANCE

Following IRS guidelines, Experian Employer Services can help companies
identify, substantiate, document and file ERC claims in a manner that minimizes
business disruption.


ENTERPRISE-LEVEL SUPPORT

Support at every step of the process, Experian Employer Service turns complex
tax credit procedures into a streamlined experience, reducing the need for your
involvement and freeing up your team to focus on higher-value tasks.

Copyright 2023 All Rights Reserved

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