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What Is The ERC?
The CARES Act was signed into law on March 27, 2020, facilitating the Employee Retention Credit (ERC) in response to the COVID-19 economic fallout. The ERC is a refundable tax credit used to incentivize businesses to keep employees on payroll during the COVID-19 pandemic. Several legislative provisions approved extension of the ERC into 2021 and expanded the scope of eligibility.
How The ERC Works
Businesses are entitled to claim tax credits on employee wages in the eligible calendar quarters of 2020 and 2021. A calendar quarter qualifies if business meets either of the following criteria:
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Significant decline in gross receipts of the calendar quarter compared to that of 2019;
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Full or partial suspension of operations due to government orders limiting commerce, travel, or group meetings.
​Please see the ERC Eligibility Page for more information on the eligibility criteria.
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The tax credit is 50% for wages paid in 2020, up to $10,000 eligible wages per employee for the year. For wages paid in 2021, the tax credit is 70% limited to $10,000 eligible wages per quarter. The ERC refund may be up to $26,000 per employee! Contact us to see if business qualifies!
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About Us
Liberty Tax Solutions LLC specializes in providing tax solutions to small businesses across the nation. The Liberty tax team is dedicated to maximizing small business growth and tax savings. We understand the greatest value is achieved when a business strategically aligns the tax savings with the business objectives set by the ownership group. Liberty Tax Solutions LLC offers a range of services including tax planning services, federal tax preparation, financial consulting, and disaster relief.
During COVID-19, our team members serviced 120+ small businesses to obtain their funding from the Paycheck Protection Program (PPP), with an aggregate of over $3 million awarded. Our team of Enrolled Agents, federally-authorized tax practitioners empowered by the U.S. Department of Treasury, are recognized to assist and/or represent taxpayers before the IRS. The firm's success in processing the Employee Retention Credit benefitted businesses from various industries in multiple states around the United States including, but not limited to food, construction, medical, and housing.
We pride ourselves on going above and beyond to promote trust, build long-term relationships, and maximize results. Our mission is to help the small business community expand operations and efficiently utilize available resources to achieve their goals and objectives. Small businesses are not only our clients, but partners and contributors to communities around the Nation.
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