The Employee Retention Tax Credit (ERC) is a refundable tax credit designed to help businesses affected by the COVID-19 pandemic. It encourages employers to keep employees on their payroll by providing a 50% tax credit for certain payroll taxes. This credit is available to churches and other religious organizations, as well as companies that have experienced a significant decrease in their gross revenues or have been subject to capacity restrictions imposed by the government. At Leyton, we understand the challenges businesses are facing due to the pandemic.
Our team of tax attorneys, scientists, engineers, tax advisors and lawyers can help you take advantage of the ERC and other financial incentives to accelerate your growth and achieve lasting performance. We can analyze the interactions between your PPP loans and other credits to help you ensure IRS compliance and reduce auditing risk. We can also provide you with a detailed summary report to confirm your credit per employee. Our financial partner can accelerate your credit with an average delivery time of two weeks, and all documentation goes through two rounds of quality control.
The audit window has been extended to five years, so you can trust our team to provide you with the necessary legal defense in the event of an audit. Lark Hotels is one example of a company that has benefited from applying for the employee retention credit. The hospitality industry has been particularly hard hit by COVID-19, and Lark Hotels had to close all its operations with no reopening in sight. However, they were able to take advantage of the ERC and keep their employees on payroll. To calculate the employee retention credit, first determine the number of eligible employees and the total amount of qualified wages paid to those employees during the corresponding quarter. Once you've determined the total amount of eligible wages paid, multiply that number by 50% to calculate the employee retention credit. If you have any questions about how to calculate your employee retention credit or would like more information on government incentives offered to innovative companies, contact Martin Karamon or visit Cherry Bekaert's ERC Guidance Center.
You can also get in touch with our team at Leyton for help getting the most out of your ERC efforts. In addition to the employee retention credit services offered by our company, Aprio works with other credits to increase your company's liquidity. We can also provide you with fun virtual team-building activities, the best employee recognition software platforms, truly awesome gifts for coworkers, ideas for corporate gifts and unique gifts for employees that their customers will love.