ERTC is the acronym for Employee Retention Tax Credit. In simplest terms, the ERTC is a portion of authorized wages paid by employers to their employees. It is one of the relief provisions included in the Coronavirus Aids Relief and Economic Security (CARES) act.
The relief is helping employers keep their employees on payroll during situations that can cause economic recession and depression. The ERTC is 50% of the wages that have been authorized by the employer to be paid to the employee. That has been the rate since March 12th, 2020, and before January 1st, 2021.
Therefore, it is provided in the CARES Act that the highest amount of authorized wages which is considered per employee, is $10,000. That is for all the quarters in the year 2020. Hence, the maximum payment from an employer to any employee in terms of authorized wages is $5,000 during the 2020 calendar year.
Not every employer is eligible to claim the ERTC. To be eligible, your business must have been affected by the COVID-19 pandemic. Self-employed persons and government employers are not qualified for ERTC. Two conditions must be met to qualify an employer to claim ERTC, and according to the IRS website, those conditions are:
● Have operations that were fully or partially suspended during any calendar quarter in 2020 due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19; or
● Experienced a significant decline in gross receipts during the calendar quarter.
“ERTC is the acronym for Employee Retention Tax Credit. In simplest terms, the ERTC is a portion of authorized wages paid by employers to their employees. It is one of the relief provisions included in the Coronavirus Aids Relief and Economic Security (CARES) act.”
It is pertinent to note that the highest additional amount of qualified wages per employee is $40,000. This is now for Q1 through Q3 of 2021, which would produce an additional ERTC of $21,000 per employee during the 2021 calendar year.
In summary, qualified businesses can now receive up to $26k per qualified employee for 2020 and 2021.
Eligible employers who have received PPP loans can be able to claim ERTC. Under the CARES Act, employers were prohibited from claiming the ERTC when the employer also received a PPP loan. The removal of this prohibition is made retroactive to the date of enactment under the CARES Act. That means employers may now have potential ERTC benefits that did not exist previously.
There is an imposition by the Act, enacted to limit the scope of the retroactive benefit. The Act imposed a special provision that disqualifies an employer in claiming the ERTC on the same wages used to confirm PPP loan forgiveness. An employer chooses to apply wages toward PPP loan forgiveness by making an election not to claim the ERTC.
An employer may not qualify for PPP loan forgiveness; in this case, all of the wages are potentially available for the ERTC. Also, an employer may have incurred more wages than were needed to substantiate PPP loan forgiveness, in which case these “excess” 2020 wages are now available for the ERTC.
The Act provides special rules that employers may use to claim retroactive ERTC benefits. In recognition that payroll tax returns have already been filed for the first three quarters of 2020, the Act permits an employer an election to treat the retroactive ERTC benefits as incurred during the fourth quarter of 2020. For this purpose, the retroactive benefits are based on eligible wages paid after December 31st, 2019, and before October 1st, 2020. Again, the IRS will eventually establish these election procedures, but this election should prevent the need to amend previous payroll tax returns to claim the retroactive ERTC benefits.
The retroactive and new changes to the ERTC have significantly increased its relevance to businesses affected by the coronavirus pandemic.
We are actively helping businesses determine the max amount they can qualify for based on their unique business situation for all available quarters.
Contact us now to set a no-cost consultation or begin your application by clicking below.
The IRS also has a webpage dedicated to the operation of the ERTC with examples of qualifying situations.
Sintia is a proud Houstonian who is earning her Bachelors of Psychology at the University of Houston Downtown. In the future, she hopes to become an Immigration Lawyer where she can live out her passion of helping individuals relocate for greater opportunities. Sintia joined Valiant Capital in April 2020 as the Support Specialist where she enjoys engaging and helping clients with all documentation needed to finalize their loan request.
In her free time, she volunteers at her church as a youth group leader where she enjoys making a positive impact in the youth community.
Ariana is a recent graduate of Texas A&M University where she received her undergraduate degree in Kinesiology and minor in business. As the adidas Campus Agent, she crafted unique ways for students to interact with the brand and increase brand exposure by aligning national campaigns with a localized corporate agenda. Her passion for fitness led her to become a Certified Personal Trainer and work as a fitness coach for D1 Sports training while she completed her undergraduate degree. For Valiant Capital, Ariana works as the Marketing Specialist where she launches social media campaigns, creates marketing materials, and implements promotion strategies.
In her free time, she enjoys crossfit, wine tasting, and traveling.
Scott is currently pursuing his degree in economics with a minor in business from the University of Texas at Austin. Scott’s previous undergraduate internship with Ascendant Industries developed his passion for finance. He began working with Valiant to further his knowledge of financial/credit analysis. Scott enjoys helping clients in order to see their businesses thrive.
Apart from work, Scott is passionate about soccer, Houston sports teams, and being outdoors.
Mario began his career in retail management working for a Fortune 500 company. Since 2009, he transitioned into entrepreneur-ship within the financial services industry. With over 11 years of business development as an entrepreneur, his primary goal is to add value to all his business relationships by connecting their financial needs to Valiant’s strong financial support network.
Most importantly he values his family of four children and his wife of 11 years.
Anthony brings a truly global perspective to the team. With a total of 20 years of experience in finance and real estate, Anthony has previously worked locally in Houston as an Investor Relations/Fund Manager. Internationally, Anthony lived and worked in London, England as a Tax Accountant for Professional Athletes and Property Developers. In George Town, Grand Cayman, he also served as a Foreign Payment Specialist.
Anthony attended BPP London University and holds both a bachelor’s degree as well as a master’s degree in accounting earned in the USA.
Anthony’s particular talent is financial analysis and projections. He has made significant contributions at Valiant by saving time and money through insightful projections and new business opportunities.
Anthony’s many achievements include being Employee of the Year twice at his previous place of employment, an award for London 2012 Olympic Volunteer, the Bank of America’s Employee Global Award, and various other employee awards for going above and beyond.
Anthony believes his very humble beginnings and his strong faith has molded him into the man he is today. Since the onset of his career, he has always been determined to make a difference for himself, his family, and his community. Anthony currently volunteers as Treasurer at his local church and served as the Men’s Ministry Leader as well.
Anthony enjoys fishing, gardening, and working on his cars. But most of all, he enjoys spending time with his wife and 3 children in Katy, TX.
His favorite hobby is to watch his daughter compete in college and amateur golf.
Rick is a graduate of Texas A&M University, where he received a Bachelor’s Degree in engineering. After graduation, Rick launched his career in Houston by specializing in land development for over 10 years and worked on various projects such as subdivisions, retail centers, and apartment communities. Rick is a Licensed Professional Engineer with over 5 years of experience providing tax incentives for commercial properties and over 20 years of experience in the construction industry including land development, subsea construction, and certifying commercial buildings for energy efficiency across the nation. Not the “typical engineer”, Rick has the innate ability to bring people together and make connections.
During his spare time he enjoys spending time in his hometown of Austin with family and friends, being on the water, playing & watching sports, and volunteering with the Houston Rodeo.
Jesus Cazares is a Houston native with over 25 years of experience in the finance industry. Throughout his experience with commercial real estate, cash-flow management, and financial analysis, his primary goal is help clients overcome challenges with managing their business growth and sustainability. With experience as a small business owner, Jesus understands the challenges with raising capital, he enjoys finding capital solutions that meet his clients needs. Outside of work Jesus enjoys spending time with his wife of 20 years and his three wonderful kids.
Mr. Abney joined Valiant Capital in April 2020 as a Senior Partner, where he focuses on building relationships with various companies through sourcing, structuring, and executing capital raises and strategic advisory engagements. Prior to joining Valiant, Mr. Abney held various senior management positions over the past six years with a large, international oil field services company. Mr. Abney began his career as an Investment Banker in Canaccord Genuity & #39;s Energy practice that served all sectors of the oil and gas industry. Mr. Abney brings over ten years of industry and banking experience covering private and public equity, debt issuances, mergers and acquisitions, fairness opinions, and restructurings and workouts. During his career,Mr. Abney has been involved in over 35 strategic corporate transactions, including approximately $4.4 billion of various capital raises. Mr. Abney holds a Bachelor of BusinessAdministration degree in Finance from the University of St. Thomas in Houston, TX.
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Loan Trinh, a native Houstonian, learned a strong work ethic at an early age. Her banking career consisted of working for Amegy Bank for 11 years in Wealth Management. Prior to Amegy she also worked for JP Morgan Chase Bank and Comerica Bank. In addition, she was a graduate of a competitive formal credit underwriting program. Her most recent role in Banking was Vice President and Private Banking Team Leader. Her role consisted of delivering Private Wealth Services and managing a portfolio in excess of $200 million dollars in loans and deposits. She’s passionate about business development, networking, and community involvement.
Loan earned a Bachelor’s degree in Business Management with a minor in accounting. She is currently licensed in real estate in Texas and Florida. She was an active member of the Houston community; She volunteered at non-profit organizations such as Ronald McDonald House, Junior Achievement, and Kipp Schools. She was a member of Commercial Real Estate Women in Houston and Asian Chamber of Commerce. She was the Chairwoman for the annual auction fundraiser at Cornerstone Academy and Co-Chair for CREW Golf Tourney fundraiser. Loan currently resides in Naples, Florida with her son.
During her free time, Loan enjoys outdoor activities, such as fishing, paddle boarding, and traveling.
Shawn began his career in the financial industry in 2007, specializing in merchant processing. As active President of Transglobal Payment Systems, since 2015, Shawn is results and community driven.Shawn joined Valiant Capital in 2017 and currently hold the position of Senior Partner with the firm.He enjoys building relationships with commercial clients in various market segments and specializes in CRE, hospitality, SBA, and Asset Based Lending. Shawn enjoys spending his time with his lovely new bride and daughter as well as, giving back to the community.
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Eddie has over 15 years of Banking experience working at both BBVA and Bank of Texas. Throughout his time in the financial industry, he has held key positions as Portfolio Manager, Branch Manager. Licensed Financial Advisor, and Commercial Lender. This combined with his background as a Licensed Real Estate agent, perfectly positioned him to begin his journey with Valiant as a Managing Partner since 2018. He enjoys helping clients find the necessary financial support that best suits their needs to insure their success.
In his free time, he volunteers as a youth leader for his church and coaches Little League baseball for his son.
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As co-founder and Managing Director, Lou Gonzalez leads Valiant Capital and oversees all operations and corporate strategies. Prior to Valiant Capital, He started his banking career in 2002 and gained his experience with Bank One, JPMorgan Chase, BBVA USA, and Comerica Bank, with a dedicated focus in SME, Commercial and International Finance.
Throughout his career, he has received numerous awards for customer dedication, production, and leadership. Mr. Gonzalez holds a Bachelor’s degree in Business Finance and has received the President’s Student Service Award by George W. Bush
His passions outside of work include, spending time with his wife and two kids, traveling abroad, snowboarding, and scuba diving.