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ERC Refund Application: Don’t Make These Costly Mistakes

The Employee Retention Credit (ERC) is a valuable tax credit that was introduced by the government to encourage businesses to retain their employees during the COVID-19 pandemic. The ERC refund is available to eligible employers who continued to pay their employees despite experiencing a significant decline in revenue due to the pandemic.

However, applying for ERC refund can be a complicated process, and making mistakes during the application process can be costly. In this blog post, we will discuss some common mistakes that businesses make when applying for ERC refunds and provide tips on how to avoid them. By understanding these mistakes and taking steps to avoid them, you can ensure that you receive the full amount of ERC refund you are entitled to.

Mistake #1: Failing to Meet Eligibility Requirements

One of the most critical aspects of the ERC refund application process is determining whether your business meets the eligibility requirements. Eligible employers can claim a refundable tax credit of up to $7,000 per employee per quarter for wages paid between March 13, 2020, and December 31, 2021. However, many businesses make mistakes in determining their eligibility, which can result in lost time and resources.

To be eligible for ERC refund, your business must meet the following criteria:

You must have experienced a significant decline in gross receipts: To qualify for ERC refund, your business must have experienced a significant decline in gross receipts. If your gross receipts in any calendar quarter of 2020 or 2021 were less than 50% of the gross receipts for the same quarter in 2019, you are eligible for ERC refund.
Your business must have been fully or partially suspended due to a government order: If your business was fully or partially suspended due to a government order, you are eligible for ERC refund. For example, if your business was forced to shut down due to COVID-19 restrictions, you may be eligible for ERC refund.
You must have fewer than 500 employees: To qualify for ERC refund, your business must have had fewer than 500 employees in 2019.

Despite the clear eligibility requirements, many businesses make mistakes when determining their eligibility for ERC refund. Some of the common mistakes businesses make include:

Failing to meet the gross receipts test: One of the most common mistakes businesses make is failing to meet the gross receipts test. Businesses may underestimate the decline in gross receipts or fail to properly calculate their gross receipts.
Misunderstanding the government order requirement: Some businesses may not realize that they are eligible for ERC refund because they misunderstand the government order requirement. It is important to review the government orders that were in effect during the time your business was affected by COVID-19 restrictions.
Incorrectly calculating the number of employees: Some businesses may think they are eligible for ERC refund because they have fewer than 500 employees, but they may not be properly counting employees. For example, they may be counting part-time employees as full-time employees.

To avoid eligibility-related mistakes when applying for ERC refund, consider the following tips:

Review the eligibility requirements carefully: Make sure to review the eligibility requirements in detail and understand what is required of your business to qualify for ERC refund.
Keep accurate records: Keep accurate records of your business’s gross receipts, employee count, and any government orders that affected your business.
Seek professional assistance: Consider seeking professional assistance from an accountant or tax professional to ensure that you meet the eligibility requirements and avoid any costly mistakes.

Mistake #2: Incorrectly Calculating the Credit Amount

Calculating the ERC refund amount is a crucial step in claiming the credit, and businesses must be careful to avoid errors in this process. One common mistake businesses make is incorrectly calculating the credit amount. This can lead to lost opportunities to claim the maximum refund, which can be detrimental for businesses that are struggling financially.

To calculate the ERC refund amount, businesses must determine the maximum credit amount per employee for each quarter, which is based on the qualified wages and healthcare expenses paid to each employee during the period. However, businesses often make mistakes when determining the credit amount, such as failing to include all qualified wages, misunderstanding the average wage requirement, and using incorrect payroll periods.

To avoid these mistakes, businesses should keep accurate records, use the correct payroll periods, and seek professional assistance if necessary. By avoiding calculation-related mistakes, businesses can ensure that they receive the full amount of ERC refund they are entitled to.

Mistake #3: Failing to Properly Document Eligibility and Credit Amount

One of the most critical aspects of claiming the ERC refund is properly documenting eligibility and credit amount. This documentation is essential for businesses to demonstrate compliance with the ERC eligibility requirements and to justify the credit amount claimed. However, many businesses make mistakes in this area, which can result in delayed refunds, penalties, and other consequences.

To avoid mistakes related to documentation, businesses must ensure that they maintain accurate records of all relevant information. This includes records of wages and healthcare expenses paid to each employee, as well as documentation demonstrating compliance with the ERC eligibility requirements. For example, businesses must be able to demonstrate that they experienced a decline in gross receipts or that their operations were fully or partially suspended due to government orders related to COVID-19.

Mistake #4: Missing the Deadline for Filing

Missing the deadline for filing is a common mistake businesses make when claiming the ERC refund. The IRS has set strict deadlines for businesses to claim the credit, and failure to meet these deadlines can result in lost opportunities to claim the maximum refund.

To avoid this mistake, businesses should be aware of the deadlines for filing and ensure that they submit their claims on time. The deadline for filing the claim for the 2020 tax year was extended to May 31, 2021, but for subsequent quarters, businesses must file the claim on a timely basis. The deadline for filing the claim for the 1st quarter of 2021 was July 31, 2021, and the deadline for filing the claim for the 2nd quarter of 2021 is October 31, 2021.

Mistake #5: Failing to Seek Professional Help

Another common mistake businesses make is assuming that they do not need professional help because they have a small business or are familiar with tax laws. However, the ERC refund is a specialized area of tax law, and businesses may require additional expertise to properly claim the credit.

To avoid this mistake, businesses should consider seeking professional assistance, regardless of their size or familiarity with tax laws. Professional help can ensure that businesses are claiming the maximum refund and that they are in compliance with all documentation and eligibility requirements.

Conclusion

Applying for the ERC refund can be a complex process, and businesses may make mistakes that can result in missed opportunities to claim the maximum refund. However, by being aware of the common mistakes businesses make and taking steps to avoid them, businesses can increase their chances of receiving the full amount of ERC refund they are entitled to.

To avoid the five common mistakes discussed in this article, businesses should:

Ensure that they meet the eligibility requirements for the ERC refund.
Correctly calculate the credit amount.
Properly document eligibility and credit amount.
File their claims on time and avoid missing deadlines.
Seek professional assistance if necessary.

By following these tips, businesses can avoid common mistakes, increase their chances of receiving the full amount of ERC refund, and ensure compliance with all documentation and eligibility requirements.

Overall, the ERC refund can be a valuable opportunity for businesses to recover losses incurred during the pandemic. By avoiding common mistakes and taking advantage of this credit, businesses can strengthen their financial position and increase their chances of long-term success.

Learning

First-Time Buyer’s Guide to the UK Property Market

Entering the UK property market as a first-time buyer can feel both exciting and daunting. The process is filled with potential pitfalls and complex decisions, but with the right guidance, it can be navigated smoothly. The estate agents in Yorkshire demystify the journey from the initial decision to buy a home to the moment you step over the threshold of your new property.

Understanding Your Financial Position

The first and perhaps most crucial step in the home-buying process is understanding your financial situation. This includes assessing your savings, income, and current debts. Here’s how you can prepare:

1. Deposit: Generally, you’ll need at least 5% of the property price as a deposit, though aiming for 10% or more can provide better mortgage rates.

2. Income and Expenses: Use a budget planner to assess your monthly income against your expenses. This will help you understand how much you can afford in monthly mortgage repayments.

3. Credit Score: Lenders will evaluate your credit score to determine your mortgage eligibility. So it’s important to have a good credit score, and you should work on it if required.

4. Mortgage Options: Speak to a mortgage advisor to understand different types of mortgages, such as fixed-rate, variable-rate, and help-to-buy schemes.

Getting a Mortgage Agreement in Principle

A Mortgage Agreement in Principle (AIP) is a statement from a lender indicating how much they’ll likely lend you. You will be a more attractive buyer with an AIP as it shows sellers you’re serious and financially prepared.

Deciding What You Want

Before you start viewing properties, it’s essential to know what you’re looking for. Consider the following factors:

1. Location: Proximity to work, schools, public transport, and amenities are key. Research neighbourhoods to find the best fit for your lifestyle.

2. Property Type: Decide whether you want a flat, terraced house, semi-detached, or detached property. Each has its pros and cons.

3. Must-Haves: Make a list of non-negotiables, such as the number of bedrooms, garden size, and parking facilities.

4. Future Proofing: Consider your future needs. Are you planning to start a family? Do you need space for a home office?

Starting the Property Search

With a clear idea of what you’re looking for, you can begin your property search. Here are some tips:

1. Use Online Portals: Websites like Rightmove, Zoopla, and OnTheMarket are excellent starting points. Set up alerts to get notified of new listings that meet your criteria.

2. Visit Estate Agents: Register with local estate agents who can provide insights into the market and inform you of new properties before they’re listed online.

3. Attend Viewings: Don’t rush this part. Visit several properties to get a feel for what’s available in your price range.

Making an Offer

Once you find a property you love, it’s time to make an offer. Here’s how to approach it:

1. Research: Check the selling prices of similar properties in the area to gauge a fair offer.

2. Negotiate: Don’t be afraid to negotiate. The starting point is most usually the asking price.

3. Conditions: You might include conditions in your offer, such as the inclusion of certain fixtures or a specific moving date.

The Legal Process

If your offer is accepted, the legal process begins. You’ll need a solicitor or licensed conveyancer to handle the legalities. Here’s what to expect:

1. Conveyancing: This is the legal transfer of property ownership. Your solicitor will handle this, including conducting searches, dealing with the Land Registry, and transferring the funds.

2. Surveys and Inspections: Arrange for a property survey to check for structural issues. There are different types of surveys, from basic condition reports to full structural surveys.

3. Mortgage Finalisation: Once the survey is complete and satisfactory, your mortgage can be finalised.

4. Exchange of Contracts: This is when the sale becomes legally binding. You’ll pay your deposit at this stage.

5. Completion: On the agreed completion date, the remaining money is transferred, and you receive the keys to your new home.

Moving In

Moving day can be hectic, but planning can ease the stress:

1. Hire a Removal Company: Book a reliable removal company well in advance. Discover the best deals by getting quotes from multiple companies.

2. Pack Strategically: Label your boxes by room and keep essential items accessible.

3. Notify Utilities and Change Address: Inform your utility providers of your move date and update your address with banks, the DVLA, and other important institutions.

Settling In

Get settled. Introduce yourself to the neighbours, familiarise yourself with the local area, and really start to make the place your own.

Here are a few final tips:

1. Safety Checks: Make sure that your smoke alarms and carbon monoxide detectors are working, and make sure that you know where the gas and electricity meters are located.

2. Maintenance Plan: Keep a record of the smooth functioning of your new home with a maintenance schedule, complete with regular checks and seasonal tasks.

3. Personal Touches: Add personal touches to make the space feel like home. This can be from putting up family photos or redoing the decoration in your rooms.

Conclusion

Buying your very first home in the UK is most definitely a milestone, difficult and full of challenges but rewarding in the end. Such a philosophy guides you in understanding finances and knowing what you want to achieve from detailed research, and seeking professional advice that confidently helps you navigate the property market. Yes, the journey may have its hurdles, but in the end—owning your own home—the reward will be worth the effort. Welcome to your new chapter!

Learning

5 Health Benefits of Regular Pedicures

There’s nothing quite like a pedicure to keep your feet looking and feeling their best, but did you know that pedicures do more than simply enhance the appearance of your feet? Many people don’t realize that regular pedicures can come with a wide range of health benefits that can promote the well-being of your feet, so here are some ways that your routine pedicure keeps both your toenails and feet in the best condition possible!

Smoother Skin

One of the biggest misconceptions about pedicures is that they only cater to and look after your toenails. While you’ll definitely be leaving each session with a fresh coat of nail polish, your pedicure can also do wonders for the health of your skin. Aside from trimming and shaping your nails and cuticles, you’ll notice that your nail technician also dedicates a few steps to the skin of your feet.

After inspecting your feet and looking for any issues or imperfections that may need to be addressed, your technician will work on an exfoliating scrub to remove any dead skin cells. This step may also be aided by a foot file, which can be used to buff away any calluses and other problem areas manually.

Softer Skin

After your nail technician addresses all the problem areas of your feet and removes any unwanted dead skin cells, he or she will often massage in a moisturizing product, such as lotion, cream, or butter, to ensure that your skin is properly moisturized. These products contain skin-loving ingredients that will ensure that your feet have everything they need to look and feel their best so that you can walk out of your pedicure with a renewed sense of confidence.

Healthier Nails

After your pedicure session, your nails will not only look better due to the fresh coat of nail polish, but they’ll also be healthier and stronger. This is because your nail technician takes their time to ensure that your nails are properly looked after through steps that include deep cleaning, nail trimming, nail filing, and cuticle care. All of these things work together to prevent issues like ingrown nails from occurring, all the while improving the appearance of your nails.

Increased Blood Circulation

While the specific steps included in your pedicure will depend on the beauty salon, most pedicures will have a massage step somewhere in the mix. One of the often overlooked benefits of these massages is the increased blood circulation, which can deliver more nutrients and oxygen to your feet and nails, promoting their health and appearance. Aside from that, better blood flow means reduced tension and soreness, as well as better distributed heat throughout your body.

Reduced Infections

A significant amount of dirt and bacteria can build up on your feet without you even realizing it, but pedicures can be a great way to prevent these from happening in the first place. The exfoliation step of a pedicure removes dead skin cells as well as all the debris that may have accumulated underneath, and the deep cleaning of your toenails and cuticles also gets rid of any impurities that may have slipped beneath them, which can stop infections from happening.

These are some of the many health benefits that you can look forward to at your next pedicure appointment. However, it’s worth noting that you need to book regular sessions to truly reap all the rewards. This can be difficult, especially when you don’t feel like driving to your nearest nail salon after a long day, but the good news is that you can enjoy the salon experience in the comfort of your own home with a home pedicure service.

Learning

Commercial Boiler Installation Services London

For businesses in the bustling city of London, having a reliable heating system is crucial. Whether you’re opening a new office, expanding your current premises, or simply upgrading an outdated system, commercial boiler installation services for businesses in London are essential to ensure your operations run smoothly and efficiently. Proper installation and maintenance of commercial boilers can make a significant difference in energy efficiency, cost savings, and the overall comfort of your workspace.

The Importance of Professional Installation

When it comes to installing a commercial boiler, professional expertise is paramount. Here’s why:

Efficiency and Performance: Professional installation ensures that your boiler operates at peak efficiency, reducing energy consumption and lowering utility bills. A well-installed boiler can effectively meet the heating demands of your business without unnecessary energy waste.
Safety: Commercial boilers are complex systems that require precise installation to operate safely. Professional installers adhere to stringent safety standards and regulations, minimizing the risk of accidents and ensuring the safety of your employees and premises.
Compliance with Regulations: Commercial properties are subject to various building codes and regulations. Professional installers are well-versed in these requirements and ensure that your boiler system complies with all local laws and standards.
Longevity and Reliability: Proper installation is critical to the longevity and reliability of your boiler. A professional installation can prevent common issues such as leaks, pressure problems, and system failures, ensuring that your boiler runs smoothly for years to come.

Key Considerations for Commercial Boiler Installation

When planning for a commercial boiler installation, several factors need to be considered:

Type of Boiler: The type of boiler you choose will depend on your business’s specific needs. Options include gas boilers, oil boilers, and electric boilers, each with its own set of advantages. Consulting with a professional can help you determine the best choice for your business.
Sizing and Capacity: The boiler’s size and capacity must match the heating demands of your commercial space. An undersized boiler will struggle to meet your needs, while an oversized one will lead to inefficiencies and higher costs.
Location: The placement of your boiler affects its efficiency and accessibility for maintenance. Professional installers can help you choose the optimal location for your boiler.
Integration with Existing Systems: If you’re upgrading or replacing an existing boiler, it’s essential to ensure compatibility with your current heating system. Professional installers can seamlessly integrate the new boiler with your existing setup.

Choosing the Right Installation Service

Selecting the right installation service provider is crucial to the success of your boiler installation project. Consider the following when making your choice:

Experience and Expertise: Look for a provider with a proven track record in commercial boiler installations. Experienced installers can handle the complexities of commercial systems and provide high-quality workmanship.
Reputation: Check reviews and testimonials from previous clients to gauge the provider’s reliability and customer satisfaction.
Comprehensive Services: Choose a provider that offers a full range of services, including installation, maintenance, and repair. This ensures that all your boiler needs are met by a single, trusted source.

In London, ROWLEN is a reputable name known for delivering top-notch commercial boiler installation services. Their team of experts is dedicated to providing efficient, safe, and compliant installations tailored to the unique needs of businesses.

Conclusion

Investing in professional commercial boiler installation services for businesses in London is essential for ensuring efficiency, safety, and long-term reliability. By choosing an experienced and reputable service provider like ROWLEN, you can rest assured that your heating system will be installed correctly and maintained to the highest standards. Proper installation not only enhances the performance of your boiler but also contributes to the overall comfort and productivity of your business environment.

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