ERTC Guidance Determines Unexpected Eligibility

Client Profile

Industry: Manufacturing
Entity Type: C-Corp
Annual Revenue: $40 million
Number of Employees: 90

Issue

Suffering fallout from the pandemic, a manufacturing company was searching for opportunities for financial relief. It had already received a PPP loan to help offset costs and was open to sitting down with our professionals to learn about its eligibility for the Employee Retention Tax Credit.

Solution

The company was found to be eligible for a $600,000 refund from the ERTC in the first quarter of 2021. Our professionals continue to monitor the situation to see if the company will qualify for further benefits because the ERTC can be taken in each quarter in 2021. Prior to our help, the company had been inaccurately informed by their current CPA that, as a PPP loan recipient, it was ineligible for the ERTC. However, the company did not realize the rules had changed at the start of 2021, allowing PPP loan recipients eligibility.

Outcome

As a result of our accurate and timely evaluation of its ERTC eligibility, the company gained $590,000 in valuable funds it otherwise wouldn’t have known to pursue.

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ERTC Guidance Determines Unexpected Eligibilityhttps://www.cbiz.com/Portals/0/Images/ERTC-Guidance-CS.jpg?ver=dcZmVBhz_2Xut3XFA9q2IA%3d%3dNavigating and Maximizing COVID-19 Assistance2021-08-26T17:00:00-05:00

Navigating and Maximizing COVID-19 Assistance

Planning & Tax MinimizationFederal TaxYes