DENVER, Sept. 23, 2021 /PRNewswire/ -- Impacted by COVID? The Employee Retention Credit (ERC) can provide a refundable payroll tax credit of up to $33,000 per W-2 employee for eligible businesses and nonprofits, even for employers whose revenues increased during the pandemic.
Unlike PPP loans, the ERC is mired in complicated tax code and claims are receiving extra scrutiny from the IRS. ERC rules are not straightforward, even for many accountants. An ERC expert can work with your accounting and payroll team to help your business maximize and secure its credit.
AW Vanguard, an innovative business advisory services firm, specializes in helping start-ups and small to medium-sized businesses determine their eligibility for ERC and other tax credits, such as the R&D tax credit, that are not on most companies' radars. "Our mission is to provide increased visibility into operations and leverage often-overlooked tax codes to enhance our clients' position," says AW Vanguard's Cofounder and CSO Lewis Rife.
Created by the CARES Act, the ERC was designed to encourage businesses impacted by the global pandemic to retain employees. The ERC can offer a sizable refundable payroll tax credit that can provide immediate benefits. The credit is 50% of up to $10,000 of qualified wages per employee in 2020 and 70% of up to $10,000 of qualified wages per employee per quarter in 2021.
To qualify for the tax credit, businesses must pass at least one of the following three tests: (1) gross receipts dropped significantly in one or more quarter of 2020 (more than 50%) or 2021 (more than 20%) compared to the same quarter in 2019, (2) operations were more than nominally impacted by a COVID-19 related government order, or (3) began business operations after February 15, 2020.
Unlike other programs, the ERC credit is available to eligible W-2 employers of any size. Employer-paid healthcare costs may be included in qualified wages but not wages paid with PPP loan funds. Due to its many nuances and increased scrutiny, it's important to claim the credit with professional assistance.
To help small businesses learn more about the ERC, AW Vanguard has partnered with popular icon Swan Sit. Dubbed "The Queen of Clubhouse" by Forbes, Swan has over 3.6 million followers on the social media platform. Her goal is to democratize information and help everyday people gain access and opportunity that's often reserved for the privileged few. The ERC tax credit is a perfect example of information not easily understood or readily available to most businesses yet highly advantageous to those who could benefit from it. Together, Swan and AW Vanguard are spreading the word to help those who were impacted by the pandemic.
About AW Vanguard
AW Vanguard offers expertise in areas that include tax compliance and optimization, fractional CFO/financial leadership, accounting and bookkeeping, financial analysis and business intelligence, business performance and tax credit optimization, department optimization, and cost reductions. More information is available at https://awvanguard.com or https://www.facebook.com/awvanguard/. You can also follow Swan on #Clubhouse @Swan.
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SOURCE AW Vanguard