Rethink the Employee Retention Tax Credit
Silicon Ledger — Business Perspective
Rolando Macias | February/March 2024 Footnote
Many CPA firms have faced challenges in addressing the ERTC due to a lack of time and resources. Additionally, skepticism has grown within the industry, as bad actors have exploited the ERTC, leaving small businesses susceptible to abuse. Silicon Ledger understands and addresses the frustrations and concerns that come with navigating the ERTC by providing a solution that ensures small businesses receive the benefits they deserve while maintaining the highest standards of compliance and ethics.
Educational resources
Silicon Ledger believes that education is the foundation of a proper ERTC filing and understands that CPAs need reliable resources to guide clients through the ERTC journey. That’s why the firm has built a platform with educational resources crafted by industry experts. These resources cover essential topics, such as:
- Entire basis of ERC claim must stem from a government order.
- Why it’s important to have a third-party tax preparer prepare and sign your 941-X.
- Income tax implications of the ERC.
- As a CPA, how should you advise your client regarding the ERC.
- Explanation of two primary methods of qualifi cation.
- How do supply chain issues impact an ERC qualification analysis.
- I’m an essential business, what if my annual revenue went up?
Silicon Ledger’s approach to ERTC
Silicon Ledger specializes in working with small businesses with 100 or fewer employees in 2020 and 500 or fewer employees in 2021 while carefully considering aggregation rules that may apply. Large employers are referred to BDO, a leading accounting and advisory firm strategically partnered with Silicon Ledger.
The impact analysis is powered by Stout, an independent partner that conducts a thorough analysis of each client’s pandemic-related challenges and impacts. Stout’s memo, typically 30-40 pages in length, meticulously documents the mandates supporting the impact analysis, providing comprehensive insights.
BDO USA strategic relationship
BDO USA handles ERTC calculations, addresses PPP treatment and maximization, deals with the treatment of shareholder wages and signs each Form 941-X as the paid preparer. BDO’s expertise ensures that the ERTC filing process is effective and timely.
BDO also ensures compliance after filings by obtaining IRS Power of Attorney (Form 2848) for each client. If any IRS notices arise, BDO handles the correspondence with the IRS at no additional cost to clients.
Representation and remediation
In the event of a Silicon Ledger client receiving an IRS Information Document Request (IDR), Silicon Ledger will facilitate their engagement with Wiggam Law, a firm with tax attorneys familiar with the Stout/BDO/Silicon Ledger process. Silicon Ledger covers the retainer fee for this service for its previously engaged clients and provides support to Wiggam Law as needed.
The bottom line
With its network of experts, ethical practices and comprehensive resources, Silicon Ledger is dedicated to helping small businesses thrive while maintaining compliance with confidence.
Connect
Silicon Ledger
Contact: Rolando Macias, Business development manager
Phone: 615-669-2470 |
Web: siliconledger.com
Email: info@siliconledger.com
rolando.macias@siliconledger.com
