The Truth about ERTC: Fact vs. Fiction
Recently, news outlets have been picking up stories about fraud related to COVID-19 relief, including the ERTC. Unfortunately, these stories are often written in an unbalanced way, focusing primarily and solely on the risk of fraud. They write about the ERTC as if it didn’t have the success it has, and disregard the nuance that exists in any tax credit program: just because some businesses have committed fraud using the program, doesn’t mean the entire program is fraudulent.
The ERTC policy is effective, well managed by the IRS, and extremely helpful to small businesses, nonprofits and local communities. It directly rewards businesses for remaining open, serving their communities, and keeping employees on their payroll.
Some “experts” have said that there is fraud and abuse and there are pushy salesmen taking advantage of the system. The IRS also says to beware. While it’s true that business owners should exercise caution and avoid “tax credit mills” when choosing a consultant to help them prepare the payroll forms necessary to apply for ERTC, this caution is not unique to the ERTC. Fraud occurred before the ERTC, and it will continue to occur long after it.
But right now, businesses need the money more than ever. Business owners and their employees alike risked their health and the health of their households to remain open during the pandemic and have the right to compensation for doing so.
To imply that business owners should avoid the ERTC altogether ignores their competency to avoid scams and draws the conversation away from the much-needed benefits the ERTC can provide to the businesses that deserve it.
The $26,000 per employee a business can receive through the ERTC can help pay better wages and benefits, lower prices for customers, pay for excess inventory, lower debt, and keep the doors open — and the benefit is taxable meaning sStates and localities win too. Business owners should take back control and consider the ERTC as a means to receive the rewards they are entitled to for staying open and keeping employees on through such difficult times.
Boston Growth Partners wants to ensure that businesses receive the relief they deserve. The process that BGP undertakes to help you apply for the ERTC is thorough and careful — a far cry from the tax credit mills that news articles warn about. Our website has articles explaining our process and how the ERTC works if you’d like to learn more. Or, if you would like to speak to one of our experts about your business specifically, you can reach out to cfo@bostongrowthpartners.com. We would be happy to answer any questions you may have!
