Finding the best ERC professionals to file an employee retention credit can be a daunting task, but it’s important to make sure that you are working with experienced and knowledgeable experts.
The Employee Retention Credit (ERC) is a tax incentive provided by the federal government in response to the COVID-19 pandemic. It provides businesses with up to $5,000 per employee for wages paid between March 12, 2020 and December 31, 2020 and up to $7,000 per quarter for wages paid in the first three quarters of 2021.
This credit can refund employers thousands of dollars in payroll taxes for qualified businesses, so seeking out an expert who understands how this works is crucial.
Tip for Finding the Right ERC Professionals
The first step in finding the right professional for filing your ERC should be researching their credentials and reputation online. A good place to start is looking at reviews from prior clients on websites like Yelp or Google Reviews as well as industry forums. Also, look at the clients they have helped, as well as how many ERC claims they have successfully submitted to the IRS.
When evaluating ERC professionals, it is also important to find out what services they actually provide. For example, one of the ERC professionals’ companies may only work with employee numbers of five or more and another one might be more willing to submit a claim just for one eligible employee.
There are ERC professionals who will also work with recovery startup companies and do not require you to have been opened by Feb 2020 as the majority of them will do. Recovery startup companies are eligible for the employee retention credit in a different way and receive less money but these types of businesses should not be left out. They are also pretty cut and dry as long as they had employees during their startup time into 2021, they will qualify.
Questions to ask the ERC Professionals
After you’ve narrowed down your list of potential ERC professionals, it’s important to ask them specific questions regarding their knowledge of the ERC program before making any commitments. Ask what type of experience they have dealing with similar cases; inquire about how long they think it will take them to complete your particular case; discuss any additional fees they may charge for filing your return; find out whether or not they offer any guarantees on accuracy or timeliness when submitting documents related to the credit claim process; and finally ask them what kind of customer service support do they provide after filing has been completed?
It’s also important that you get clear answers from potential candidates concerning how much communication there will be throughout the process so that everyone involved knows exactly what needs to be done when certain tasks need to be completed by whom etc. Knowing ahead of time who will handle which parts of the project can help avoid problems later on down the line.
Don’t forget to make sure whomever you choose offers some form of guarantee around accuracy/timeliness when submitting documents related to claiming credits. This could save plenty of headaches later on.
Finally, keep in mind that most importantly ensure that the ERC professionals that you choose are in compliance with IRS regulations. There are some fly-by-night organizations and tax professionals that have not had as much experience as larger companies that specialize in ERC. The fly-by nights will not be there to back you up and could also be giving you poor advice, so be sure you are working with a reputable company.
In conclusion, the Employee Retention Credit (ERC) is a great way for businesses to get back some of the money they lost due to COVID-19. Finding an experienced and knowledgeable expert who understands how this works is essential in order to maximize your refund. Researching credentials and reviews online, looking at prior clients, asking specific questions about their knowledge of the ERC program, and ensuring that the specialists are compliant with IRS regulations are all important steps when evaluating potential ERC professionals. Taking these steps will help ensure that you make the best decision in choosing an expert for filing your employee retention credit.
