Tax Credits
We help CEOs, CFOs, CPAs, and other financial professionals claim the ERC & R&D Credit and we can help you, too! Don’t delay – contact us!
Employee Retention Tax Credit
What Is the Employee Retention Tax Credit (ERTC)?
The Employee Retention Tax Credit (ERTC) is one of many relief provisions included in the CARES Act to encourage small businesses to keep employees on staff instead of furloughing or laying them off. The credit is equal to 50% of qualified wages paid to an employee between March 12, 2020, and Jan. 1, 2021, including qualified health plan expenses. For 2021, the tax credit is 70% of the first $10,000 in wages per employee in each quarter of 2021. That means this credit is worth up to $21,000 for 2021 and up to $5,000 for 2020 per employee.
Who Is and Isn’t Eligible for the Employee Retention Tax Credit?
Unlike other, more broadly applicable provisions mentioned in the CARES Act, the ERTC is only available to certain qualified employers whose businesses have been affected by the coronavirus pandemic. These include most types of businesses, except for self-employed individuals and government employers.
There are two ways to qualify for the ERTC as an eligible employer. You need to qualify either due to:
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Fully or partially suspend operations due to a coronavirus government mandate with more than nominal impact
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OR Show a significant decline in gross receipts.
The IRS guidelines define significant decline and how to determine nominal impact. We can help you make these determinations.
How Much Can You Claim Through the Employee Retention Tax Credit?
A small business could potentially receive $26,000 in credits per employee kept employed through 2020 and 2021.
Research & Development Tax Credit
What is the R&D Tax Credit?
The Research and Development (R&D) tax credit is a government incentive designed to reward U.S. companies for investing in innovation. They are a valuable source of cash for businesses to invest in accelerating their R&D, hiring new staff and ultimately growing.
The R&D tax credit is for businesses of all sizes. Companies from various industries can qualify for this government-sponsored tax benefit just by performing their day-to-day activities.
How does the R&D Tax Credit Work?
Companies that spend money developing new products, processes, or services, or enhancing existing ones, are eligible for R&D tax relief. If you’re spending money on your innovation, you can make an R&D tax credit claim to receive either a cash payment or a corporate tax reduction. The scope for identifying R&D is huge – in fact, it exists in every single sector. And if you’re making a claim for the first time, you can typically claim R&D tax relief for your last two completed accounting periods.
Few companies in the US actually know that they can claim the R&D Credit for their day to day activities. Recover your expenses with one of our experts at Tavola Group!
At Tavola, we focus on helping your company take advantage of federal and state R&D Tax Credit, no matter the size of your company!
Expert Tax Credit Services
We help CEOs, CFOs, CPAs, and other financial professionals claim the ERC & R&D Credit and we can help you, too! Don’t delay – contact us!