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Employee Retention Credit Studies
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Employee Retention Credit Studies
Whether your business is large or small, you care about your bottom line. When it comes to your taxes, you want to claim every possible credit to maximize your cash flow. The employee retention tax credit can be a major benefit for businesses looking for the best possible tax return. Our CPAs for employee retention credit study in Bucks County, Montgomery County, and Philadelphia have extensive experience serving businesses of all sizes of companies. Get in touch with our team of tax professionals at SD Associates, P.C. today to learn more about our accounting services or to schedule your employee retention tax credit consultation.
To help you understand how the employee retention credit works, let’s look at an example. Assume that your business has 10 employees and you paid each employee $5,000 in wages in the first quarter of 2020. In order to qualify for the credit, your business must have experienced a decrease in revenue of 50% or more when compared to the first quarter of 2019.
If your business meets the revenue requirements, you would be eligible for a credit of $2,500 (50% of $5,000). This credit would be applied to your quarterly payroll tax liability. If you have any questions about how the process works or how to apply it to your business, our team at SD Associates, P.C. can help with your employee retention credit study in Bucks County, Montgomery County, Philadelphia and surrounding areas.
The tax professionals at SD Associates, P.C. have years of experience helping businesses in Bucks County, Montgomery County, Philadelphia and surrounding areas receive the employee retention credit. We will help you determine if your business is eligible for the credit and we will also ensure that you receive the full amount to which your business is entitled. The process of applying for and receiving this credit can be quite complex, which is why it pays to have a team of professionals on your side.
What is employee retention credit?
The employee retention tax credit was created in response to the COVID-19 pandemic under the CARES act. The credit is available to eligible employers who keep their employees on the payroll during the pandemic. It was designed to encourage employers to keep employees on their payroll throughout the pandemic, as opposed to laying workers off in mass quantities.
According to the IRS, wages up to $10,000 per worker can be counted to identify the amount of your 50% credit. This can also include health plan expenses, depending on the type of policy and the total cost.
At SD Associates, P.C., we have a team of tax experts who can help you determine if your business is eligible for the employee retention tax credit. We will also help you maximize the credit by ensuring that you receive the full amount to which your business is entitled.
How do you qualify for the employee retention credit?
The first qualification for the employee retention credit is to operate an organization that is classified as a ‘trade or business.’ The trade or business’s main objective is to turn a profit, and its activity must be ongoing.
In order to qualify for the employee retention credit, your business must have experienced a decrease in revenue of 50% or more when comparing 2021 to the same quarter in 2019 and decrease in revenue of 25% or more when comparing 2020 to the same quarter in 2019. If your business is eligible, you can claim the credit for each qualifying employee that you keep on your payroll. Businesses of all sizes can be eligible for the credit.
Organizations that are eligible for the credit include:
Non-eligible organizations include:
Unparalleled service: There’s a reason our accounting firm is the best kept secret in the tri-state area. Our full-service accounting firm provides the services associated with a large company, but is still small enough for our CPAs for employee retention credit studies in Bucks County, Montgomery County, Philadelphia, and the surrounding areas to provide personalized service. Our team of six shareholders and associates will work tirelessly to help your business get the best possible outcome.
High professional standards: We adhere to all of the American Institute of Certified Public Accountants (AICPA) auditing standards, guidelines, rules and regulations. SD Associates, P.C. has been reviewed by the Pennsylvania Institute of Certified Public Accountants for quality control, and our work has received the highest possible rankings.
Wide client base: Our clients come from a wide range of industries and professions. We have served small local businesses, large corporations, individual taxpayers, and even charter schools. No matter what type of business you run, we have the experience and knowledge to help with your employee retention tax credit.
Personalized service: We know that every business is different, which is why we offer personalized services to each and every one of our clients. We will work with you to come up with a tailored solution for your specific needs.
Accessibility: We strive to make ourselves accessible to our clients when they need us most. Our team promptly responds to all emails, and we are always available for a phone call if you need advice or have a question. You’ll never have to wonder if your records are up to date or if your tax return has been submitted.
SD Associates, P.C. provides professional employee retention credit studies in the tri-state area. Our service areas include, but are not limited to:
If you are looking for help with employee retention credit studies in Bucks County, Montgomery County, Philadelphia and surrounding areas, SD Associates, P.C. is your first choice. Our team of tax experts will work with you to ensure that your business receives the maximum amount of the credit. We have experience working with businesses of all sizes, so you can be confident that we will get you the best possible result. Contact a team of tax experts today to schedule a consultation. We look forward to working with you!
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