Don’t forget to tell your story!
We have explored in depth the different qualifiers for the employee retention tax credit (ERTC), but what is equally important is the process for filing. Even if you know for sure that your company qualifies, if you don’t have everything in order when you file then things can still not go your way.
A lot goes into verifying qualification and filing for the ERTC, but most would be surprised by what the most common mistake made by most businesses is. It isn’t a county number or sales number. Payroll information or taxes aren’t the most common mistake. Most companies even get their taxes and employee counts correct. The main mistake that most accountants make when filing for the ERTC is not having all of their documentation together that validates whichever qualifier you are using!
Often this is documentation of local or federal mandates that hindered your ability to do business or drastically altered the way you had to do business. Not only do you need a copy of the mandates that affected your business, but you also need to tell the story of exactly how they affected you. Did they restrict business hours? Were you forced to add additional safety measures that were costly? Was your occupancy lowered to allow for social distancing? Actually creating a narrative that explains exactly how you were affected is a key step that often gets missed.
The rest is easy!
It isn’t even a difficult step, just an easy one to miss or not spend enough time on. Some people think that their case will be so obvious they don’t need to spend much time here, but you always need to make sure that you have copies of everything that affected your business and a detailed description of how it had that effect.
As basic of a step as it is, this is the most common mistake that we see. As for the rest of the process, it is pretty straightforward. The math isn’t difficult at all, and once you have done several of them it becomes even more simple. Now that we have done over 150 of them, we can damn near do them in our sleep!
If this is something that isn’t on your radar, or you and your team are intimidated by it; then give us a shout! We have done so many of these that we can make the process of figuring out if you qualify incredibly easy. If you do qualify, we will do all the heavy lifting when it comes to filing and give you a lifetime guarantee of our work! What do you have to lose?
For a layman’s guide to the employee retention tax credit check out our roadmap below:
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