FAQ | Filing for Employee Retention Credit , Calculation in USA
Employee Retention Credit Rules in USA
The tax credit is for employers who experienced difficulties in 2020 and 2021 as a result of COVID shutdown orders and related economic disruptions. Typically, we recommend any employer who has more than 5 employees, experienced any kind of hardship during the pandemic be formally assessed by a tax professional. The potential upside of such a large credit (often six-figures) makes it worth looking into.
And since this credit will be phasing out in April 2023, there is a limited window to file claims.
We do an initial call (10 minutes) to field any questions you have about the credit and make sure you fully understand the process and implications for your business. You then submit the required documentation (profit and loss reports, PPP forgiveness reports, etc.). Most business owners already have all these reports on hand, so you can expect to spend about an hour getting the documentation together. Next, we do another brief call (30 mins) to let you know your eligibility and credit amount, finalize the engagement. We then handle the rest of the process. We coordinate with your outside tax professional to give them the information they need to correctly report the credit with your income taxes.
We maintain all audit documentation on your behalf for the duration of the 3 year audit window. We stand 100% behind our work so we provide full audit representation related to our claim work as part of your claim, so there is no surprise in the event of an audit. We are also fully insured for errors and omissions on all our work as a fully licensed CPA firm. We provide other credit services, so are not a pop-up shop that will be gone in 6 months.
The fee is communicated ahead of our engagement so you will know the full return on investment before deciding to work with us. Our initial consultation and credit calculation are complimentary, so there is no cash out of pocket to see how much you qualify for.
Once we have determined how much credit your company is eligible for, our initial retainer is payable upfront and is typically 5,000. The remainder of the fee which is usually is payable once the IRS processes your claim. The overall fee tends to be in the range of 10-15% of the credit, but is dependent on the complexity of the claim.
No, there is no need to switch to Dominion from your existing professional. We are a 3rd party provider for other CPA firms because of our unique expertise and proprietary technological applications. We communicate directly with your CPA to provide them all the information they need to make sure there are no hiccups in your income tax situation.
Most outside CPA firms are glad to work with Dominion because it means less work for them, a streamlined experience for the client, and reduced risk of audit problems because of our expertise with filing claims. Keeping up with specialty credits on top of all the regulatory work CPAs are responsible for is a daunting task, which is why so many firms are happy to partner with a specialty practice like ours.