Background
The Employee Retention Tax Credit (ERTC) Program was established by Congress in March 2020 as part of the CARES Act that was passed in response to the COVID-19 pandemic. The program was designed to provide financial assistance to businesses dealing with the unique challenges presented by the pandemic by providing up to $26,000 per employee to be paid directly to the business in return for retaining its employees. Unlike loans or grants, any amount recovered through the ERTC Program was a refund of a portion of payroll taxes already paid by the business.
To assist eligible businesses navigate the various government programs that became available, Verus – in partnership with experienced tax advisors and attorneys – developed a service team to advise small businesses on eligibility for the Employee Retention Tax Credit (“ERTC”) and help with the completion of the applications for the credit when appropriate.
Challenges and Solutions
Navigating Complex Governmental Regulations
The COVID-19 pandemic impacted businesses of every size and many struggled to survive in the face of unprecedented shutdowns, operating restrictions and declines in gross revenues. Verus’ team of professionals developed a process that allowed it to help its clients recover the funds to which they were entitled to, which were dependent on the unique circumstances of each business and could range as high as $26,000 per employee.
Finding Eligible Businesses
Verus conducted targeted digital marketing campaigns aimed at businesses in certain defined industries that were particularly hard-hit by pandemic restrictions, including restaurants and other hospitality providers, salons, not-for-profit service entities such as homeless shelters, home health aides and food pantries, and businesses encountering supply chain disruptions such as car dealerships and building materials distributors. The key focus was on businesses with fewer than 100 full-time employees.
Staffing Appropriately
In addition to Verus’ experienced financial services staff and operational expertise, we retained a team of specialized accountants dedicated to negotiating the complex rules and helping impacted businesses obtain the tax credit to which they were entitled. We also maintained a team of intake specialists trained to conduct the initial interview, enabling prospective clients to assess quickly whether or not they would likely be eligible for the program.
Evaluating Data to Maximize Recovery for Eligible Businesses
Unlike other ERTC processors, Verus performed its eligibility analysis at no cost to the client, receiving payment only if and when the client received ERTC funds. Verus’s team of professionals assisted clients from initial intake through receipt of any credit refund from the Internal Revenue Service. We collected the necessary financial and other data and processed the submissions, using Verus’ proprietary claims platform which allowed a level of scalability and nimbleness that benefited our clients. In addition, Verus pledged to back its calculations in the event of an audit.
Results
As a result of the adaptability of Verus’s resources and experienced staff who were well-versed in handling claims processing and financial evaluations, we were able to recover significant amounts of money for qualifying businesses, helping them manage the monetary losses sustained during the pandemic and allowing them to survive major financial setbacks.
Over the approximately 18 months the program was in place, Verus recovered a total of $43.9 million for 234 clients, averaging over $180,000 per business.
Conclusion
By harnessing existing resources and expanding our teams of intake specialists and specialized accounting professionals, Verus was able to help clients navigate complex government regulations at a challenging time and maximize much-needed recovery to allow them to continue running their businesses and support their employees.
Rely on Verus’ proven track record of innovation and expertise to ensure your business is able to handle unforeseen challenges in an ever-changing landscape.
About Verus
Verus is an innovative litigation support services firm providing end-to-end litigation support to mass tort and class action law firms nationally. Our offerings include a full suite of services, including Case Management and Medical Review Services, Settlement Administration, Business & Advisory Services, lead generation, lien resolution and Analytics. Since 2004, Verus has administered over 8.5 million personal injury claims and disbursed over $8 billion dollars in settlement funds. For more information, contact us at 1-888-681-1129 or at www.verusllc.com.
