Why Are You Delaying Your Employee Retention Credit (ERC) Application?
The Employee Retention Credit (ERC) is a refundable tax credit introduced as part of the CARES Act in March 2020 to help businesses retain their employees during the COVID-19 pandemic. Despite its potential benefits, many business owners have been delaying their applications for the ERC. The last day to claim the ERC for wages paid in 2020 is April 15, 2024, and ERC claims for 2021 wages must be received by the IRS by April 15, 2025, so time is of the essence. So why haven't you filed your ERC claim?
Lack of Awareness
One of the main reasons why business owners might be delaying their application for the ERC is simply a lack of awareness. Many business owners may not be aware of the credit, or they may not fully understand how it works. This is particularly true for small businesses that do not have dedicated tax or accounting departments.
DUB Financial can help by providing education to business owners and their teams. They can explain the eligibility criteria, the application process, and the potential benefits of the credit. By increasing awareness and understanding of the ERC, more businesses may be encouraged to apply. Business owners need to make sure their claims are substantiated and linked to the appropriate government shutdown orders. We have found a tool to make this easier: https://ercspecialists.com/shutdown-orders
Complexity Of The Application Process
Another reason why business owners might be delaying their application for the ERC is the complexity of the application process. The ERC requires businesses to provide detailed information about their payroll expenses, including wages and Paycheck Protection Program (PPP) loans received. This information can be difficult to gather and organize, especially for businesses that do not have sophisticated payroll systems.
DUB Financial can help by assisting with the application process. In fact, many of our customers are directed to services like ours by their CPA firms or in-house finance experts because of our unique familiarity with the federal guidelines.
We can work with you to gather the necessary information, complete the application forms, and submit the application to the IRS. By taking care of the administrative burden, ERC Specialists can help businesses save time and resources.
Fear Of Audits Or Penalties
Some business owners may be delaying their application for the ERC due to a fear of audits or penalties. The IRS has stated that it will be closely scrutinizing ERC claims, and businesses that make false or inaccurate claims could be subject to penalties or even criminal charges.
DUB Financial can help by providing guidance and support throughout the application process. They can ensure that businesses are providing accurate and complete information, and they can help businesses prepare for potential audits or inquiries from the IRS. By working with a specialty ERC firm, businesses can minimize their risk of penalties or other negative consequences.
Lack Of Resources
Finally, some business owners may be delaying their application for the ERC due to a lack of resources. The COVID-19 pandemic has hit many businesses hard, and some may not have the financial resources or staffing levels to devote to the application process.
DUB Financial can help by providing affordable and flexible services. We can work with businesses of all sizes and industries and can offer solutions to businesses with 1 to 500 employees. By working with DUB Financial, businesses can access the benefits of the ERC without putting additional strain on their resources.
The Employee Retention Credit (ERC) can be a valuable tool for businesses looking to recover from the impact of the pandemic. There’s no risk in asking what we can do to help. Contact us today to see what we can do for you.