No "Tax" in ERTC

The Employee Retention Tax Credit, or ERTC, is managed by the IRS. Both the name and the involvement of the IRS make it seem like it’s entirely tax-related. But it actually has to do with the number of employees on a business’s payroll. It rewards businesses for retaining employees during COVID-19 despite being restricted by government orders. There’s a lot of confusion surrounding the ERTC, but the experts at Boston Growth Partners can help.

Don’t Let the Name Confuse You!

The Employee Retention Tax Credit, or ERTC, explicitly mentions “tax” in the name. But this is actually misleading — it’s actually a payroll credit. It’s not related to taxes, but rather the amount of employees a business has (and retained) during COVID-19. The ERTC is handled through the IRS, which is another cause for confusion. The IRS was chosen by Congress to receive and vet ERTC applications simply because they were the organization best positioned to do so. 

How Does the ERTC Actually Work?

As mentioned above, the name of the ERTC and its implementation through the IRS can be confusing. But what the ERTC does is common-sense: it rewards businesses for serving their communities and keeping employees on their payroll, even as they were affected by government orders related to COVID-19. For example, if a business struggled with supply chain issues due to government-ordered shutdowns of their suppliers, they would qualify for compensation. The compensation amount would be based on the number of employees they have. 

Not Sure if You Qualify? Let Us Help.

Many businesses across the country were affected by government orders and COVID-19. The ERTC guidelines for who is eligible are broad to help as many businesses as possible — but this can also make it difficult for businesses to know if they qualify. Beyond knowing whether or not they qualify, the paperwork involved takes time and careful “detective work” to gather all the information the IRS needs. But business owners don’t always have the time to do that alone. That’s where a consulting firm with successful ERTC experience like Boston Growth Partners can help. For more information or to read testimonials of businesses that were given their much-deserved compensation, visit www.bostongrowthpartners.com, or speak directly to an expert by emailing cfo@bostongrowthpartners.com.