Employee Retention Credit Services in Chicago, IL

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.

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  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.