IRS changes on ERC: Why don’t all Businesses Qualify for the credit? Learn more !

Unlocking the Employee Retention Credit: Who Qualifies and Who Doesn’t?

Your eligibility for pandemic-related credits or assistance isn’t solely determined by the fact that your business was impacted by the pandemic. Rather, it’s a combination of factors, that collectively influence whether you qualify. Reach out to our team with 25+ years of global experience to start your ERC Claim.

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Find out if you actually qualify for the ERC

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        Continue your journey with us and receive up to:

        • Receive your credit earlier
        • Quality Assurance
        • Maximize your claim
        • Transparency
        • Audit Support

        This estimation is based on the information you have provided and assumes that your business meets the eligibility criteria for the relevant period(s) for the Employee Retention Credit (ERC). It is important to keep in mind that this calculator should not be relied upon or used for any other purpose, including applying for the ERC or amending tax returns. Additionally, it does not fully account for other tax credits or COVID-19 relief measures, such as the PPP, FFCRA’s paid leave credits, WOTC, and others, which may affect your eligibility. The information provided by this calculator is of a general nature and is not intended to be construed as legal, accounting, or tax advice, nor is it an opinion provided by Leyton.

        You might not be qualified for the Employee Retention Tax Credit.

        However, you might be qualified for one of other services.

        See if you qualify for R&D Payroll Tax Credit

        This estimation is based on the information you have provided and assumes that your business meets the eligibility criteria for the relevant period(s) for the Employee Retention Credit (ERC). It is important to keep in mind that this calculator should not be relied upon or used for any other purpose, including applying for the ERC or amending tax returns. Additionally, it does not fully account for other tax credits or COVID-19 relief measures, such as the PPP, FFCRA’s paid leave credits, WOTC, and others, which may affect your eligibility. The information provided by this calculator is of a general nature and is not intended to be construed as legal, accounting, or tax advice, nor is it an opinion provided by Leyton.

        How We Ensure Compliance

        Our experts have identified $360M in benefit!

        Unlike other companies, Leyton has a rigorous selection process, our experts disqualified approx + 1,300 companies and has qualified approx + 2,100 in order to demonstrate that we do not just allow things to pass.

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          Receive Your Credit Earlier

          In some cases, Leyton can accelerate your credit through the support of our finance partner with an average turnaround of 2 weeks.

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          Navigate Your PPP Loan 

          We can navigate the interactions between your PPP loans and other credits to help you ensure IRS compliance and reduce audit risk.

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          Ensure Quality Assurance

          All documentation goes through 2 rounds of quality control.

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          Receive Your Summary Report

          We’ll deliver a detailed summary report report to substantiate your credit per employee.

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          Maximize Your Claim

          We’ll calculate your ERC for all applicable financial quarters during 2020 and 2021, ensuring you are receiving your maximum benefit.

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          Support Your Audit

          The audit window has been extended to 5 years. Trust in our team of tax attorneys that can provide the legal defense needed in the event of an audit. 16 hours are included in our service.

        What is the Employee Retention Credit?

        The Employee Retention Credit (ERC) is a tax credit created under the CARES Act. This refundable tax credit is a relief measure for businesses that encourages them to keep employees on their payroll. The ERC legislation was expanded under the Consolidated Appropriations Act, which took effect on January 1, 2021, and because of this expansion, all employers who took PPP loans could be eligible for the ERC for 2020 and 2021.

        2020

        In 2020 eligible businesses can claim up to $5,000 per employee for the year. [The IRS due date for 2020 is April 15, 2024]

        2021

        In 2021 eligible businesses can claim up to $21,000 per employee for the year. [The IRS due date for 2021 is April 15, 2025]

        What is a Common Misunderstanding Regarding ERC?

        Unfortunately, many businesses are receiving inaccurate advice regarding their qualification. To make informed decisions when selecting a provider, it is crucial to grasp the prevalent misconceptions surrounding this credit and ensure you are asking the right questions. 

        To assist you in navigating through the misinformation, we are addressing the prevailing misconceptions currently circulating in the world of the ERC. It’s important to be aware that:

        ● Not all businesses are qualifying 
        ● You likely can’t claim $26k per employee
        ● ERC and Paycheck Protection Program (PPP) Loans are not the same- you may be eligible for both
        ● ERC is not just for large corporations- some small to mid-size companies can qualify

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        Great people
        Define your success

        Leyton has over 70 highly qualified tax & technical experts on staff to calculate your claim and keep up with legislation changes. Our team comprises of CPAs, tax attorneys, scientists, engineers, & so much more.

        Jennifer Bolton, LL.M., J.D.

        Head of Tax

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        Andrew Bibas, J.D., C.S.

        Tax Attorney

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        Matthew Demerle, J.D.

        Tax Attorney

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        Ebraheim Ismail, MSc.

        Employee Retention Credit Team Leader

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        ERC Process – How It Works

          Upload & Sync Your Financial Information For Review​

          Quickly and securely connect your payroll and accounting apps to our digitized tax platform. 
          Our platform can integrate to major HR and Payroll or Accounting apps such as ADP, Paychex, Oracle, Quickbooks and more!

          Obtain Visibility

          Merging our user-friendly features with innovative technology allows full visibility of your 
          claim at all times. The REV platform allows you to save time through secures exchanges and 
          obtain visibility of all processes.

          Maximize Your Credit Through Tax Expert Evaluation

          Our dedicated Tax and Technical Experts are here to maximize your claims, 
          so you never have to worry about leaving money on the table. 

        ERC Tax Scenario Hospitality

        This company had a significant decline in gross receipts in 2021. They were also affected by the government shutdown.

        • Number Of Employees 70
        • Claiming Period Q2 of 2021
        • PPP Loan Details $300k in 2020 – $400k in 2021

        ERC Claim

        $140,000 Calculate Your Credit arrow_outward arrow_outward

        ERC Tax Scenario Education Industry

        This school based out of Massachusetts had a significant decline in gross receipts of 20% compared to 2019.

        • Number Of Employees 108
        • Claiming Period Q1 and Q2 of 2021
        • PPP Loan Details Smaller compared to Payroll wages

        ERC Claim

        $1.1M Calculate Your Credit arrow_outward arrow_outward

        ERC Tax Scenario Dental Practice

        A small dental practice based out of California claimed Q1 through Q4 of 2020: $18,500 & Q3 of 2021: $21,500.

        • Number Of Employees 8
        • Claiming Period All of 2020 & Q3 of 2021
        • PPP Loan Details $168,000, $84,000 each year

        ERC Claim

        $250,000 Calculate Your Credit arrow_outward arrow_outward

        Secure Technology to Claim Tax Credits with Transparency

        REV by Leyton is a cutting-edge tax credit platform that combines technology with our best-in-class tax team. Quickly sync your payroll and accounting software to share relevant business data and information. Merge user-friendly features with innovative technology, the REV platform allows you to save time through secured exchanges and obtain visibility of all processes

        Explore REV arrow_outwardarrow_outward
        REV by Leyton Accelerates R&D and ERC Tax Credits for Startups and SMBs

        FAQs

        Everything you need to know about ERC

        Can’t find the answer you’re looking for? Please contact our team

        What is the IRS latest law changes?

        The IRS announced on September 14, 2023 that there were halted the processing of new ERC claims due to high levels of fraudulent claims, leading to a more extensive auditing process. However, existing claims are still being processed, albeit at a slower pace.


        I’m not sure if my business qualifies. What kind of business qualifies?

        There is a wide range of businesses that qualify for the ERC. The most typical businesses that qualify are the following industries:
        Education | Hospitality | Healthcare | Retail | Industrial | Legal Services | Construction and more!

        I employ many full-time workers. Can I still claim?

        While small employers with 100 or fewer employees in 2020 (500 or fewer in 2021) receive more benefits under ERC, large employers can still take advantage of the ERC.

        Can I receive a PPP loan and still claim the ERC?I employ many full-time workers. Can I still claim?

        Yes! While wages funded by a PPP loan can’t be included in the ERC calculation, ERC has much wider applicability than your PPP loans. During your claim process with REV by Leyton, you’ll need to provide details on your PPP loans to help qualify employee wages for the ERC.

        How much can I claim under the ERC?

        This credit is calculated differently for eligible quarters in 2020 and 2021. An eligible employer can claim up to $5,000 per employee in 2020 and up to $7,000 per employee per qualifying quarter in 2021. The maximum amount you can claim per employee is $26,000.


        How much does it cost?

        Schedule a complimentary consultation to chat about the ERC specific to your business.