Employee Retention Credit Services in Chicago, IL
A Chicago-based CPA firm with more than 30 years of experience, Susan S. Lewis, Ltd., can help your company with the Employee Retention Credit (ERC). Take advantage of ERC Illinois tax credits for individuals and businesses across the nation and get as much as $26,000 per employee. Contact us now to check if you are eligible at no charge!Get in Touch Today
Illinois Trusted ERC CPA Firm
The COVID-19 pandemic, although receding in intensity, will have repercussions for years to come. From inflation rates to interest rates to supply chain disruptions, the coronavirus plays a role in the economic dynamics. No better example is the tax implications of the employee retention credit (ERC). Eligibility requirements for employers still pose a challenge for businesses. Ours is a CPA firm with solid experience in this area of tax law and can assist clients in obtaining any credits for which they qualify. Based in Chicago, Illinois, Lewis.cpa offers comprehensive tax planning to companies in Illinois and around the United States. We consult with them on this tax credit and others.
What Is the Employee Retention Credit?
The U.S. government initiated measures to stimulate businesses and consumers when COVID-19 started. Many measures were encompassed by the Coronavirus Aid, Relief and Economic Security Act, or CARES Act. Among its provisions is the employee retention credit ERC. This rewards companies that continued to pay employees during the pandemic.
This payroll tax credit is for many businesses that continued to pay workers during the pandemic despite the need to downsize or cease operations. The plan covers the period from March 13, 2020 to December 31, 2021. Employers who paid their workforce during all or part of this stretch can claim the ERC on their original or adjusted business tax return. To qualify, a company must have either ceased or significantly curtailed activity while still paying employees. Separate from the ERC are dollars counted for the Paycheck Protection Program PPP loan forgiveness.
Claiming ERC credits is complicated. It depends on what calendar quarter, or quarters, of the covered 21 months qualified wages were paid, but a professional can help. Susan S. Lewis LTD's ERC consulting services can help you claim thousands of dollars in deductions against employee or payroll taxes if your business was impacted enough by the pandemic and meets other criteria. Originally, businesses couldn't do this and use PPP loans at the same time, but recent adjustments to the legislation allow you retroactively apply credits to multiple tax years.
Can You Still Apply for the Employee Retention Credit in 2023?
The IRS announced in a news release in September 2023 that it has paused the processing of new claims for the Employee Retention Credit. This pause is in response to increasing concerns about improper claims and ERC fraud. It is expected to last at least until the end of the year.
How Our Chicago ERC Specialists Can Help
COVID-19 recovery services might not seem necessary now, but you can still receive tax benefits for your business. Our ERC help covers multiple aspects of ERC (ERTC) accounting and ERC help. Count on CPA ERC services for the following:
Need help identifying which employees qualify and how much you can save with each one? Our ERC audit services are perfect for this step in the process.
ERC Filing Support
You don't have to sift through complicated paperwork on your own. Our ERC filing services are here to help your business get the credits but also save time and money on working on this.
ERTC Compliance Support
Doing accounting for ERC credits makes sure that your business is in a state of compliance with the appropriate legislation. Take full advantage of the potential credits while avoiding penalties or doing things wrong.
Form 7200 Preparation
The IRS has a specific form you need filled out in full and accurately in order to claim these credits. Let us take care of the details for you.
Reporting ERTC for Form 941
Reconciled data is crucial for this form, and it's just another tax document we can help you prepare, revise, and file as needed to stay on the good side of the IRS.
Do You Qualify for Employee Retention Credit?
- Must be an eligible employer;
- Must have eligible wages;
- Full-time or equivalent.
The pandemic has brought about significant changes to the economy, affecting companies across all industries. As a nationwide CPA firm, we have been busier than ever, providing essential services to small and large businesses alike. One of the key programs we specialize in is the Employee Retention Credit, which helps reimburse businesses through a tax credit for retaining employees.
However, navigating the requirements for this program can be complex and daunting for many businesses. That's where we come in to ensure that you understand it all. We are a trusted advisor that can help you understand and meet the requirements for the Employee Retention Tax Credit. Our focus is on providing our clients with the guidance and expertise they need to receive their funds, while reducing risk and eliminating confusion.
Don't let the many conditions, contingencies, and stipulations surrounding the Employee Retention Tax Credit hold you back - work with us to ensure your business is taking full advantage of this crucial program. Our clients have seen great success through our services, and we are ready to help your business do the same.
After we thoroughly examine your situation, we can then let you know for sure if you qualify. Our experts will walk you through the process and also go over your unique situation, and then, and only then, we can determine if you qualify for the employee retention credit.
Find Out If Your Business Is Eligible for ERC at No Charge!
Lewis.cpa is well grounded in the rules governing the Employee Retention Credit. Contact us for a free consultation.FIND OUT IF YOU ARE ELIGIBLE
2022-2023 ERC Guidelines
There are very specific guidelines for the ERC that you have to meet in order to qualify for them. We can handle the nitty-gritty details, but a quick overview can help you see if this is worth exploring.
Two specific wage periods are covered by the ERC:
- 2020 - March 13 - December 31, 2020
- 2021 - January 1 - September 30, 2021
Eligibility for either year could have resulted from your business experiencing a partial or full shutdown due to pandemic restrictions and the impact of the economy. For 2020, you could also qualify if your business experienced a decline in gross receipts more than half of what you would have had in a comparable quarter during 2019. For 2021, the decline threshold was only a 20% loss of gross receipts compared to 2019 quarters or possibly 2020 in some situations.
The amount of credit is different for each year:
- 2020 - 50% of qualified annual wages up to $10,000 per employee per year.
- 2021 - 70% of qualified quarterly wages up to $10,000 per employee per calendar quarter.
The maximum credit is different for each year:
- 2020 - the maximum credit is $5,000 per employee.
- 2021 - the maximum credit is $7,000 per employee per quarter.
The IRS has issued a stoppage on new ERC filings until the end of 2023, as ERC fraud has become a growing concern.
What Businesses Can Benefit from ERC?
Employee retention credit companies who are eligible for ERC land in many different industries, including:
In-person shopping was difficult to impossible in many cases.
Municipal, state, and federal justice departments and courtrooms were shut down for a long time.
Economic uncertainty and lockdown restrictions seriously constrained many charity organizations.
This sector arguably had the hardest time during the height of the early pandemic.
Make the Most of Your Credit
Calculate how much you can get back, fill out the forms, and enjoy the maximum return. Contact us for help with every step of this process.Contact us
Chicago ERC Specialists Serving Nationwide
Lewis CPA accountants have a lot of useful experience in the Chicago, IL, area, but we can also serve clients across the nation.
Why Choose Our ERC CPA Firm?
Our professional and certified experts are some of the best in the business, and they can help your company in many different ways.
Employee Retention Credit FAQs
Given the unique nature of this tax credit, it's understandable if you have questions. You're far from the first.
How much do accountants charge for ERC?
Companies looking to take advantage of the Employee Retention Credit (ERC) may be wondering how much they can expect to pay their accountants for their services. While there is no one-size-fits-all answer, it's important to note that the cost of an accountant will depend on factors such as the complexity of the tax situation, the size of the business, and the scope of the work that needs to be done. However, despite the varying costs, it's important to remember that working with an experienced accountant can ultimately end up saving the company money in the long run by helping them maximize their eligible ERC benefits. So while the cost of an accountant may seem daunting at first, it's important to weigh the potential benefits against the expense to make an informed decision.
How long does it take to get an ERC refund?
If you're eagerly waiting for an ERC refund, you're not alone. However, the timeline for receiving your refund can vary depending on a few factors. Generally, it takes 60-90 days from your submission of the ERC application to the receipt of the refund. The time frame could be longer if the IRS deems that the application needs further review or if they require additional information. The good news is that the refund will include interest, so you'll get back more than just the initial credit amount. While the wait may feel long, the end result will be worth it.
Do you have to pay back the ERC credit?
Are you one of the many Americans who received the Employee Retention Credit (ERC) in 2020 and are wondering if you have to pay it back? Well, the answer is simple: no, you do not have to pay it back. The ERC was introduced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to encourage employers to keep their workers employed during the pandemic. It is a fully refundable tax credit, which means that if the credit exceeds the amount of payroll taxes owed, employers will receive a refund from the IRS. So, if you received the ERC, you can rest easy knowing that you do not have to pay it back.
Is ERC taxable in Illinois?
Since the U.S. operates under a system of federalism - with national and local governments each having sovereign powers - it is logical to wonder whether a state like Illinois can tax money received through the federal government Employee Retention Credit. Does a credit afford by the IRS equal income in the view of the Illinois Department of Revenue? Some states, New York and California for example, do not tax businesses for the value of ERC credits because they maintain subtraction regimes whereby the Employee Retention Credit amount is removed from what they pay in qualified wages. Other states like New Jersey simply include the ERC value in with all other taxable income.
Although the Illinois Department of Revenue will determine taxability according to business eligibility for employee retention credits, as a rule of practice, corporations are allowed to utilize the subtraction arrangement in calculating their gross adjusted income. Essentially, this means that Illinois does not tax ERC income. Necessary to know, however, is that - given the newness and uniqueness of the processes involved, these decisions might one day be subject to judicial review. Nevertheless, for the time being, an employer that paid salaries and wages through the coronavirus emergency should inquire as to ERC eligibility.
Don't Lose Your Benefit
While you can enjoy these tax credits for 2020 and 2021, you might not be able to do it forever, and you should take advantage of the consolidated appropriations act as soon as you can. Contact us right away to learn how you might get back $26,000 per qualifying employee based on wages paid!