Our approach to capturing the employee retention credit
Eligible Employer Analysis
Claiming the Refund and Documentation
Eligible Employer Analysis
- Determine which entities are considered members of your aggregated group
- Complete a headcount analysis to determine large or small employer status for purposes of the ERC
- Analyze which locations may be subject to government orders
- Analyze gross receipts in 2019, 2020 and 2021 to evaluate whether there is a significant decline
- Review operational and headcount impacts to help determine if there is a partial suspension of operations
Credit Calculation
Claiming the Refund and Documentation
Eligible Employer Analysis
- Gather data to calculate and substantiate eligibility and potential ERC value
- Determine the eligible employees for whom the credit will be calculated
- Track eligible wages and calculate the ERC
- Complete PPP overlap analysis to help maximize benefits under both programs
- Create a report that details the credit at the entity and employee level for each eligible period
- Provide guidance on the ERC overlap rules for other federal tax credits
Claiming the Refund and Documentation
Claiming the Refund and Documentation
Claiming the Refund and Documentation
- Assist with the preparation and filing of Forms 941X
- Prepare a technical summary of applicable business facts and circumstances, qualification of eligibility, ERC calculations with related methodology, and documentation to substantiate eligibility and qualified wages
- Provide tax techncial support in the event of an IRS examination
With the ERC, Complexity Abounds
While the steps to complete the ERC process may seem straightforward, there is a sea of complex issues that must be successfully navigated. That's where Reinsman Consulting comes in. We know how to address these issues and will help you avoid the common and more business-specific pitfalls that the ERC often presents.
Some examples of complexity include:
- Mergers and Acquisitions
- Complex structures and aggregate employer rules
- Newly formed entities
- Full time IRC 4980(h) headcount analysis
- Government order analysis and application
- Interpreting guidance and eligibility scenarios: Notices 2021-20, 2021-23, 2021-49, and Revenue Procedure 2021-33
- National policy considerations
- Payroll data analysis
- 2020 rules vs 2021 rules
- Application of the "more than nominal" test for business presence and impact
- International revenue considerations
- Hedging gains and losses
- Optimizing multiple programs
- Individual program rules and program integration, including HHS Provider Relief Funds, PPP loan forgiveness, FFCRA paid leave, Restaurant Revitilization grants, etc.
- Calculation rules for each potential credit period