employee retention credit
Your Business is Our Business
The Partners of Dixon Consulting specializes in maximizing ERC Funding for Small Businesses.
In the face of the COVID-19 pandemic, we all encountered unprecedented challenges. As the global economy ground to a halt and the world adapted to a new reality, numerous businesses found themselves teetering on the brink of uncertainty. However, as we gradually restore a sense of normalcy, it becomes crucial for businesses to focus on their recovery. Thankfully, several government programs have emerged to support this process.
One such program that stands out is the Employee Retention Credit (ERC), a stimulus initiative specifically designed to bolster businesses that managed to retain their valuable workforce during these trying times. Despite its potential to provide much-needed relief, the ERC has unfortunately been underutilized, largely due to its intricate tax code and complex qualification criteria. However, by gaining a comprehensive understanding of the program, businesses can unlock its benefits and navigate the path to recovery with confidence. Key details of the program include:
• Up to $26,000 per employee
• Available for 2020 and Parts of 2021
• Qualify on decreased revenue or COVID event
• No limit on funding (ERC is not a loan)
• ERC is a Refundable tax credit - [IRS TAX CODE HERE]
ERC Specialists
Start Your ERC Funding
WHy Dixon Consulting’s ERC Specialists ?
Are you a business owner looking to maximize your benefits from the Employee Retention Credit (ERC)? Look no further! Dixon Consulting is here to assist you every step of the way as your dedicated ERC specialists. Our team of experienced professionals understands the complexities of this tax credit and is committed to helping you navigate the process with confidence.
Why Choose Our Partners?
Extensive Experience: Our team has extensive experience in assisting businesses across various industries with their ERC needs. We stay up to date with the latest legislation, guidelines, and changes to ensure accurate and reliable advice.
Tailored Solutions: We understand that every business is unique. That's why we offer personalized solutions tailored to your specific circumstances. Whether you're a small startup or a large corporation, we have the expertise to meet your ERC requirements effectively.
Comprehensive Services: Our ERC specialists provide end-to-end services, starting from a thorough assessment of your eligibility for the credit to calculating the qualified wages and preparing the necessary documentation. We handle the complexities, allowing you to focus on running your business.
Proactive Guidance: We don't just crunch numbers; we are proactive partners in your success. Our team of ERC Specialist will guide you on strategies to maximize your ERC benefits while maintaining compliance with the regulations. We are here to answer your questions and provide ongoing support.
Increased Savings: Our goal is to help you unlock the full potential of the ERC. By leveraging our expertise, you can potentially save significant amounts on your tax liabilities. These savings can be reinvested in your business, allowing for growth and expansion.
Peace of Mind: Navigating the ERC process can be daunting, but with our ERC Specialist by your side, you can have peace of mind. We ensure accuracy, compliance, and timeliness, giving you the confidence to focus on what you do best.
Take the Next Step Here
Ready to optimize your ERC benefits and maximize your savings? Get in touch with our ERC specialists at Dixon Consulting today. We offer a complimentary consultation to understand your business and assess your eligibility for the credit. Our team will then develop a customized plan tailored to your specific needs.
Don't miss out on the opportunity to save on your tax obligations and strengthen your financial position. Partner with Dixon Consulting, your trusted ERC specialists, and let us help you navigate the complexities of the Employee Retention Credit. Contact us today to get started!
ERC Qualifications
While the general qualifications for the ERC program seem simple, the interpretation of each qualification is very complex. Our significant experience allows us to ensure we maximize any qualifications that may be available to your company.
•Gross Receipts Reduction
Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.
•Full or Partial Suspension of Business Operations
A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
Frequently Asked Questions
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Yes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, modified the ERC credit rules. One of the modifications included allowing a company to have a PPP loan and still take advantage of the ERC credit. However, you can't use the same dollar for dollar funds. We take this into account when processing your ERC credit.
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No. This is not a loan. It’s a refundable tax credit. When we file your ERC claim we request a refund check for you.
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Of course. The challenge is the ERC credit is taken on your payroll returns and not through your business income tax returns, which is what most CPA's handle. Because of this most CPA's don't process this credit, unless they process your payroll in house. This is also a big reason why this credit is so underutilized. Since CPA's don't typically handle it and they are the tax experts, it has mostly fallen in a middle ground where few are able to effectively process the credit. Interestingly, we receive a large portion of our clients from CPA's.
Our ERC specialist Partners have decades of payroll experience, which has allowed us to specifically focus to understanding and maximizing the ERC program. In our experience we have found that due to the complexity (the ERC tax code is over 200 pages) and time investment necessary to understand the ERC program, very few are able to effectively maximize this sizeable credit for your business.
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Our service charge is based on a percentage of the credit recovered. We calculate and provide our fee with our free analysis. Since we are typically able to recover 10-20% more than someone less familiar with the program, our fee is very affordable. Just like a good CPA, using the right team for this process pays for itself.
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Yes! There are two possible qualifications for 2020: revenue reduction, or a "full or partial shutdown of your business due to COVID-19". Specifically the IRS describes this as "A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings." Below are several examples of qualifying events:
Example 1: A restaurant must close or limit its on-site dining. Such as having to close down every other table, due to COVID-19 restrictions.
Example 2: A business that needs to meet with clients in person and has to cancel meetings due to COVID-19 restrictions.
Example 3: A business has to reduce their operating hours because COVID-19 restrictions and cleaning requirements.
Example 4: A business had delayed production timelines caused by supply chain disruptions.
Example 5: A business with a planned event has to cancel that event, or restrict the amount of people who can attend due to COVID-19 restrictions.
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This is not a lending program - tax refunds are issued by the US Treasury. Therefore, all eligible employers will receive the funds.
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Maybe. Wages of owners who have majority ownership, defined as over 50%, do not qualify, nor do the W2 wages of any immediate family members of the owner. In the case an owner has less than 50% ownership, their W2 wages qualify, as do the W2 wages paid to immediate family members.
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No, if you are majority owner (over 50%) of your company then your wages do not qualify.
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The ERC credit is not considered income for federal income tax purposes, but you must reduce any deductible wage expenses by the amount of the credit. Please provide the credit information to your CPA for tax purposes.