Kenneth Dettman, Sagemont Tax CEO, joins Lorena Tomasini, owner of MALM Life and Health Insurance Agency, on her podcast to discuss the Employee Retention Credit (ERC).
Here are some highlights from their conversation:
“[As of December 2020], it was no longer the PPP (Payroll Protection Program) or ERC (Employer Retention Credit), you could take both. What is it? It’s a payroll tax credit and it’s refundable, meaning it’s a cash credit. It’s available to businesses that either had a financial statement impact because of COVID-19 or had an operational impact, where they had to change or modify the way they did business as a result of the COVID-19 restrictions.”
“The credit is available technically to all employers but in a meaningful way, it’s only available to employers that had under 500 full-time employees when looking at 2019 as the tested period. Obviously, 500 employees is a lot of employees and it can result in significant amounts of credit when you’re up in that realm. Overall, it’s available for anyone from 1 employee up to 500 employees.”
“We believe to do this right, the traditional model of a law or accounting firm, being led by bona fide, licensed, credentialed professionals, is a must. If you compare our work product, which is typically a 15-10-page substantiation package, to some of our competitors, who are offering 1, 2, or 3 pages of very boilerplate reports, they aren’t really telling the story that the IRS is going to want to hear.”
“We put a lot of effort, time, and technical resources behind our work product and there’s a lot of opportunity for bad players to enter the space; they’re already here. It’s important to choose a provider that is going to be with you now and do the right thing, and also going to be with you down the road in the event that you ever need to work through this with the IRS.”
– Quotes from Kenneth Dettman, CPA, Sagemont Tax CEO
Twelve Minute Talks, where important information is shared in a short time period.