Employee Retention Tax Credit (ERTC) – Maximizing Your Business’s Refund

The Employee Retention Tax Credit (ERTC) is one of the most substantial tax incentives for businesses in recent history. Originally introduced under the CARES Act in 2020 and later expanded, the ERTC allows eligible businesses to claim a refundable tax credit of up to 70% of the first $10,000 in wages per employee per quarter from Q2 2020 through Q3 2021.

ERTC Eligibility Criteria

Businesses qualify on a quarter-by-quarter basis through either of these two tests:

• Revenue Decline Test – A decline of more than 20% in gross receipts compared to the same quarter in 2019.
• Government Order Test – A federal, state, or local government order directly restricting business operations. This does not include voluntary operational changes like shifting to virtual meetings.

Key Considerations When Claiming ERTC

• Beware of aggressive tax credit sales firms – Many third-party providers charge excessive fees and may overstate eligibility, leading to IRS audit risks.
• Linked Accounting offers audit-backed calculations – Unlike commission-based firms, our fees are warranted against future IRS audits.
• Credits are fully refundable – The IRS issues direct refunds for eligible claims, with an estimated six-month processing time.