Debunking Myths About The Employee Retention Credit (ERC)

May 24th, 2023

The Employee Retention Credit (ERC) has been a game-changer for small business owners, offering significant financial benefits during these challenging times. However, misinformation and misconceptions often cloud the understanding of this valuable tax credit. Let's debunk three prevailing myths surrounding the ERC. With our hard-working team, coupled with our strong credibility and expertise, we aim to provide clarity and guidance to small business owners seeking to maximize their ERC claims.

Myth #1: Revenue Decline Is the Only Qualification Criterion

Contrary to popular belief, one of the common myths surrounding ERC is that you must have a revenue decline to be eligible for this tax credit. Resolute Tax Credits is here to set the record straight. While a revenue decline is indeed one way to qualify, it is not a requirement. Small business owners can also qualify for the ERC by demonstrating operational suspensions due to government orders or if they are a recovery startup business. Resolute's team of experts can help navigate these alternative paths to ensure you don't miss out on valuable ERC benefits.

Myth #2: PPP Loan Eliminates ERC Qualified Wages

Another misconception that needs to be dispelled is the notion that the Paycheck Protection Program (PPP) loan wipes out all qualified wages for ERC purposes. Resolute Tax Credits understands the intricacies of these two programs and the potential for synergy between them. While it is true that you cannot double-dip and claim the same wages for both the ERC and PPP forgiveness, there are still opportunities to maximize your benefits. Resolute's expertise ensures that you accurately identify and claim eligible wages, optimizing your ERC benefits while navigating the complexities of PPP forgiveness.

Myth #3: ERC Triggers an Automatic IRS Audit

Fear of triggering an IRS audit is a persistent myth associated with the ERC. However, Resolute Tax Credits wants to put this misconception to rest. While it is essential to ensure compliance and accurate reporting, claiming ERC does not automatically lead to an audit. The IRS conducts audits based on various factors, and claiming ERC alone is not a trigger. With Resolute's expertise and use of cutting-edge tools, you can confidently navigate the ERC process, ensuring accurate reporting and peace of mind.

Unlock Your ERC Benefits with Resolute Tax Credits:

Resolute Tax Credits is committed to providing small business owners with accurate information and expert guidance regarding the Employee Retention Credit. By debunking prevailing myths surrounding the ERC, Resolute aims to empower entrepreneurs to maximize their financial benefits.

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