Employee Retention Tax Credit Update

PBO Advisory Group’s Scott Palka recently participated in webinar sponsored by the Floatation Tank Association, which focused on the Employee Retention Tax Credit (ERTC). The organization serves the floatation industry including float centers, tank manufacturers, educators, consultants, and the floating public.

Scott has made several information-packed presentations on the ERTC, and this webinar was no exception.

The ERTC process is detailed. Scott did a great job of providing an overview for the FTA members and helping them to basically understand the program and qualifications.

Scott gave the audience several good tips about ERTC, including:

  • The name is confusing. It is not a tax credit, despite the name. Instead, it is refund, so if you are eligible, you will receive a cash reimbursement from the IRS, not a credit.
  • Unlike the Paycheck Protection Program (PPP) loan program, there is not a cap on the total amount of funds that can be paid by the government under the ERTC. As Scott said, “It’s like an open-ended checkbook” in terms of the funding that is available.
  • There are a lot of companies and individuals who claim to be ERTC professionals and suggest you can get a big refund. Be careful! It’s important to get help from only those who understand the program and have experience helping others with claims. Most claims are much less than the $26,000 per employee that is advertised.
  • The IRS is paying interest on claims. Be sure you are receiving all funds you are entitled to.
  • When you will get your payment from the IRS is unpredictable. Some companies are receiving checks within 90 days and some are taking up to a year or more.
  • Claims based on 2020 employment data must be filed by April 15, 2024. Claims for 2021 are due April 15, 2025.
  • If you filed an ERTC claim and believe it was too low/incorrect, you can file an amendment.

If you have questions about any of this information or would like additional details about the ERTC program, please contact Scott Palka.

We thank the Floatation Tank Association for inviting us to speak to its members. Please contact us if you have an organization you’d like us to talk with about ERTC or many other accounting, financial, and HR issues.

PBO Advisory Group’s Recent ERTC Insights

 


Scott Palka, CPA, MBA, CFA
Consulting CFO & Member
scott@pboadvisory.com
(858) 935-4847