LAGUNA NIGUEL, Calif.--(BUSINESS WIRE)--Business continues to pick up at Omega Accounting Solutions of Laguna Niguel.
Ever since the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in 2020, the independent agency’s tax, accounting and financial management specialists have developed a reputation for helping small businesses claim up to $35,000 in tax relief for each employee retained during the pandemic as part of the Act’s Employee Retention Tax Credit (ERTC).
Now that there is broad consensus that Congress will eliminate the ERTC in the coming weeks as part of the passage of the Democrats’ $3.5 trllion antipoverty and climate plan, more employers than ever are enlisting Omega’s services to maximize their tax savings while they still can.
“Since the first days of the CARES Act, there have been two ways for employers to receive support: the Paycheck Protection Program (PPP) and the ERTC,” said Omega President and Founder Jay Woods. “Most small businesses limited their focus to the PPP – so we realized that there would eventually be a lot of firms that didn’t meet the PPP’s standards or would want to explore additional revenue through tax savings.”
“Since that initial realization, we’ve helped 196 clients recover more than $19.6 million in ERTC tax savings. And we’re signing new clients every day, because there’s just not enough firms processing this credit for businesses that potentially qualify.”
The CARES Act is a $2.2 trillion economic stimulus bill passed by the 116th U.S. Congress and signed into law by President Donald Trump in response to the economic fallout of COVID-19. Under CARES Act provisions, employers are entitled to a refundable tax credit of up to $7,000 for each employee retained during the fourth quarter of 2020, and up to $7,000 for each quarter of 2021 – for a total tax credit of up to $35,000 for each employee retained through the end of 2021. To qualify, business owners must prove financial hardship due to COVID-19.
Woods says that businesses applying for the Employee Retention Tax Credit must establish and document eligibility requirements, and accurately calculate the wage credit in consideration of Paycheck Protection Program (PPP) forgiveness and other tax credits. He also recommends that business owners work carefully with their payroll processor to maximize the cash flow timing of the tax credit.
While Woods is happy his firm has become the “go-to” agency for clients wanting to understand the CARES Act, his passion is using customized business intelligence to help small firms maximize long-term growth. In 2020, Omega launched a Business Intelligence Division to provide firms with customized KPIs, continuously refreshed dashboards and other programs that allow them to connect data silos and take advantage of real-time opportunities in the marketplace.
“Business decisions can only be as good as the data and information they are based on – and far too many business owners don’t have enough information, or don’t know how to collect, integrate and analyze their own data, to make a truly informed decision,” he said. “Small businesses without CFO or senior accountant support are especially susceptible to this – and add on 18 months of stagnant earnings because of COVID-19, and the impact on the bottom line can be significant.”
“While our mission has always been to give small business owners the information they need to make the best decisions, that promise seems especially relevant right now.
About Omega Accounting Solutions
Omega Accounting Solutions is a is an accounting and data firm that empowers small businesses to make informed business decisions through the production of accurate and timely books that yield honest, insightful, actionable reports. The Laguna Niguel, Calif., firm founded by Jay Woods works with CFOs, controllers, accountants and software developers to collect, integrate, analyze and present essential data that allow for healthy corporate operation and growth. For details, go to https://omega-accounting.com/about-us/
