As an employer, you might be familiar with the Employee Retention Credit (ERC) that the IRS introduced in 2020 as a part of the CARES Act. The ERC offers tax credits to eligible businesses for retaining their employees during the COVID-19 pandemic. The ERC is a highly beneficial program that can help your business save a significant amount of money. However, navigating the program and ensuring that you maximize your benefits can be challenging, which is why you need an experienced ERC Advisor to guide you through the process.
In this article, we will guide you on how to find an experienced ERC Advisor and what to look for in a qualified advisor.
Why Do You Need an Experienced ERC Advisor?
Before we delve into how to find an experienced ERC advisor, let’s first understand why you need one.
Qualifications of an Experienced ERC Advisor
Not all tax advisors are the same. When it comes to the ERC, you need an advisor with specialized knowledge and experience. Here are some qualifications to look for when finding an experienced ERC advisor:
ERC Knowledge
Your ERC advisor should have extensive knowledge of the ERC program and the related tax laws. The advisor should keep up-to-date with the ERC changes and updates to help you maximize your benefits.
Tax Expertise
Your ERC advisor should be an expert in tax laws and regulations to ensure you comply with the IRS’s requirements. A tax expert can also identify any tax-saving opportunities that your business can leverage.
Industry Experience
ERC eligibility and tax laws can vary by industry. An experienced ERC advisor should have industry-specific knowledge to guide you on how to maximize your benefits.
How to Find an Experienced ERC Advisor
Finding an experienced ERC advisor can be overwhelming, but here are some tips to help you find the right advisor for your business.
Referrals
Ask for referrals from other business owners who have used the services of an ERC advisor. Referrals can give you an idea of the advisor’s expertise and service quality.
Online Research
Search for ERC advisors online and check their credentials, experience, and reviews. You can also check with professional associations and tax organizations to find qualified advisors.
Interview Multiple Advisors
Interview multiple advisors to compare their expertise, services, fees, and communication skills. A good ERC advisor should be willing to answer your questions and explain the ERC program in a way that you can understand.
FAQs
How much does an ERC Advisor cost?
The cost of an ERC advisor can vary depending on the advisor’s experience, services, and location. The fee is usually based on the amount of the tax credit received and may vary between 10 and 25 percent. Some advisors charge an hourly fee, while others charge a flat fee. However, keep in mind that the cost of an ERC advisor is a small investment compared to the potential tax savings. Also, always ask up front.
Can I claim the ERC without an advisor?
Yes, you can claim the ERC without an advisor. However, the ERC program is complex, and an experienced ERC advisor can help you maximize your benefits and avoid costly mistakes.
Can I change my ERC advisor?
Yes, you can change your ERC advisor if you are not satisfied with their services. However, ensure that you have a smooth transition plan and that you notify the previous advisor of the change.
Conclusion
The Employee Retention Credit (ERC) is a beneficial program that can help your business save money. However, to maximize your benefits, you need an experienced ERC advisor to guide you through the process. Look for an advisor with specialized ERC knowledge, tax expertise, and industry-specific experience.
When finding an experienced ERC advisor, ask for referrals, research online, and interview multiple advisors. The cost of an ERC advisor can vary, but it is a small investment compared to the potential tax savings.
In conclusion, finding an experienced ERC advisor is crucial to ensure that your business maximizes its Employee Retention Credit benefits. With the right advisor, you can navigate the complex ERC program and save a significant amount of money in taxes.
