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CARES Act Employee Retention Tax Credit

There is still a lot of confusion surrounding the CARES Act Employee Retention Tax Credit (ERTC). The Illinois Manufacturers’ Association and Synergi Partners are collaborating to help IMA members maximize their potential tax credit. Many employers have been provided inaccurate or incomplete information regarding how they qualify, and in some cases have been told they aren’t eligible for the credit at all – when in fact they are.

As a professional service, Synergi Partners will evaluate specific impacts to determine whether our members are eligible for the ERTC – which can be substantial.

This ERTC is money that the federal government has specifically allocated to U.S. companies that experienced operational limitations or diminished receipts resulting from COVID – thereby rewarding employers for retaining and paying their employees. It is an above the line payroll credit with a potential credit up to $26,000 credit per employee based on qualified wages in 2020 and 2021.

Common Misconceptions:

  • We are an Essential Services Business and are not eligible.
  • We took the PPP, so we are not eligible.
  • We were not shut down, stayed open the whole time and are not eligible.
  • Our company did not suffer a loss in gross receipts/was profitable year-over-year and therefore are not eligible. (Click here for more details)
  • The good news – there is still time to qualify! And unlike the PPP loans, the ERTC is not public information and is protected for nondisclosure under the Internal Revenue Code.

Synergi Partners is the largest privately owned incentive and tax credit consulting and processing company in the US. It is operated by tax credit industry veterans with more than 200 years of combined experience. Beyond having an experienced team internally, they also consult with DLA Piper, their outside counsel, to confirm and develop their positions and processes to keep their clients in compliance with all that they do.

Still have questions? We will be holding a Zoom call September 20 to discuss further.

The IMA is proud to bring their expertise to our members and if you’re interested in more information, please complete the form below and we’ll connect you with Synergi experts.