Employee Retention Credit Refund Recovery Attorneys in Texas
Saying COVID-19 placed business owners in a challenging situation is an understatement.
Most Texas businesses that were impacted by COVID-19 required employers to scale back their payrolls, reevaluate their operations, or suffer from a temporary or permanent shutdown while the world recovered from the pandemic.
Thankfully, tax credits were made available to business owners who were able to remain in business, and retain their employees, during one of the most difficult times in history.
The Internal Revenue Service extended the Employee Retention Credit (ERC) to qualifying employers to help both essential and non-essential businesses in any industry that was impacted by the COVID-19 pandemic.
ERC is a refundable tax credit against certain employment taxes of the qualified wages an eligible employer pays to employees after March 12, 2020, and before October 1, 2021.
Simply stated, business owners can now claim up to $5,000 tax credit for every employee on their payroll in 2020, and up to $7,000 for the first three quarters in 2021, whether they received the Paycheck Protection Program (PPP) funds or not.
Unfortunately, like most government-operated programs, the paperwork associated with the ERC can be overwhelmingly technical, and if it is not reported clearly and precisely within the IRS guidelines, business owners risk losing access to these important funds.
Our Glen Larson Law Employee Retention Credit Refund Recovery lawyers in Texas can help ensure your submission is complete, so you can obtain access to the credits your company deserves.
Here is what Texas business owners need to know about their eligibility to pursue a credit.
Which Businesses are Eligible to Pursue an Employee Retention Credit in Texas?
The Employee Retention Credit was overhauled in 2021 to provide tax credits that offset — or potentially eliminate — payroll taxes for businesses throughout the country that were impacted by the COVID-19 pandemic.
While most employers believed they had to choose between the Paycheck Protection Program (PPP) and ERC, business owners may now possibly use both by amending their 2020/21 Quarterly Form(s) 941.
You may be eligible for an ERC in Texas, if:
- Your business operations were fully or partially shut down OR enforced reduced business hours because of the governmental authority.
- Your business suffered a significant decline in quarterly gross revenue when measured against 2019, including:
- At least a 50% decline from 2019 to 2020.
- At least a 20% decline from 2019 to 2021.
Businesses may be eligible for ERC under the Recovery Startup Assistance Act — for the 3rd and 4th quarter of 2021 only — if their business is not eligible under the previous categories, and:
- Began carrying on trade or business after February 15, 2020.
- Has annual gross receipts that do not exceed $1 million.
Qualifying businesses may obtain the financial credits available under ERC that include:
- 2020: Claim up to 50% of the first $10,000 in credit for qualified employee wages per quarter paid between March 13 and Dec. 31, 2020.
- 2021: Claim a credit against 70% of qualified wages paid. The amount of wages that qualify for the credit is now $7,000 per employee per quarter for the first three quarters of 2021, totaling up to $21,000 in total per retained employee.
Retroactively amending your business tax returns for previous years can be confounding for even the most successful companies and their intelligent staff. Our ERC attorneys in Texas will help ensure your company’s eligibility to amend the necessary tax documents, and precisely verify the supporting paperwork, so you can take advantage of these important tax credits without worry.
When is the ERC Filing Deadline?
Qualifying businesses can claim the Employee Retention Credit retroactively for the years they were eligible.
- For 2020 ERC claims, eligible businesses have until April 15, 2024, to amend their taxes to include the credit.
- For 2021 ERC claims, eligible businesses have until April 15, 2025, to amend their taxes to include the credit.
To ensure you have access to the eligible tax credits you deserve for keeping your business and employees working during the COVID-19 pandemic, contact our skilled ERC attorneys in Texas at Glen Larson Law at 737-345-4388 or contact us online today to schedule a free consultation.
We pursue dedicated, driven results for our clients, and there is never a charge to talk to an attorney. We stand ready to help you.