ERC – Employee Retention Credit
If you are already a client of UAP, let us help you obtain an ERC, which is an Employee Retention Credit. This credit can only be obtained through UAP if you were a client of ours during 2020 and/or 2021 and you are found to qualify by UAP. The credit is obtained by UAP amending the 941 employment taxes that UAP filed for your employees that are “technically” UAP’s employees for purposes of filing these taxes, since they get filed on our return. You can’t file for this credit on your own, and no third-party can file for you since it is our tax return that only we can amend.
Beware, there are hundreds of third-party companies out there saying they can help you get these credits, usually for a very large fee (e.g. 30% of the total amount you are entitled to), but these companies can’t help. All the computations they do for you, UAP has to do from scratch so we don’t/can’t use their numbers. This is because we are responsible for our own returns. The main purpose of third-party companies is to tell you that you qualify, no matter what, because then they get paid their percentage and you and UAP take all the risk if they make a mistake. In fact, simply google this: “employers warned to beware of third-party ERC companies“ to see a list of all the articles warning you about these types of companies, including a warning from the IRS.
It is very important to only apply if you “really” qualify, and UAP can compute that based on the federal regulations. We won’t put you at risk of paying back the IRS during a future audit, so we won’t apply if you really don’t qualify. Since it is our tax return, it is our decision.
If we do file for this credit on your behalf, we will likely ask you to sign an extended agreement (through the ERC audit period of the IRS), sign an indemnity agreement, and based on timing and several other factors probably bill you for the accounting time and liability.
We cannot estimate how much a credit would be, or what our charge would be, until we receive all the records, and ensure we have all the documentation to defend a future IRS audit.
We are here to do everything we can to get all our clients this credit, as long as you qualify for it.