03/28/2023
What employers are eligible for the (ERC) The Employee Retentions Credit?
As a measure designed to benefit employers impacted by the pandemic, to qualify, an organization must be carrying on a trade or operating as a business in the financial year 2020 or 2021, as well as having experienced:
A full or partial suspension due to the pandemic.
Supply chain disruptions due to vendors who experienced shutdown orders.
A significant loss of gross receipts.
Which employees qualify?
The employees that qualify for ERC claims vary based on business size. For a small employer, the credit can be claimed on employee wages. For 2020, a “small employer” equates to 100 or fewer full-time employees, and for 2021, 500 full-time employees. For employers with full-time employees in numbers greater than 100 (2020) or 500 (2021), the credit can only be claimed on wages paid to employees for not working. Family members or employees who own a portion of the company are ineligible.
Do I have to pay this back?
No! It’s a refund of payroll taxes. It’s YOUR money! There are no restrictions on how you use it.
What if we wait to claim the ERC?
Time is of the essence as the program has technically expired. We have a limited time window to claw back your money rightfully owed. The program could run out of allocated funds at any time and is subject to the whims of Congress. Don’t delay!
Are ERC funds taxable?
The ERC credit is not treated as taxable income. However, it does adjust your payroll expenses. Once you receive your refund, you will be responsible for letting your CPA know the final amount and having them correctly report the changes on your business tax returns.
How do I know if my business qualifies?
The IRS expects 70–80% of small and medium businesses to qualify. You qualify if your company experienced disruptions to commerce, travel, or group meetings! The disruptions can include supply chain disruptions, price increases, staffing shortages, difficulty hiring, reduced hours, reduced goods or services, and inability to travel or attend conventions. Please fill out the brief pre-qualification form and talk to one of our Tax Rebate Specialists to find out more.
How many quarters can the ERC be claimed?
The number of quarters that a business can claim depends on eligibility. ERC funds are available for wages paid between 3/13/20 and 9/30/21. For startup businesses, wages paid between 7/1/21 and 12/31/21 are eligible.
What is the Employee Retention Credit (ERC)?
ERC is a refundable payroll tax credit. Born out of the same CARES Act as PPP, it aims to provide economic relief for small and medium businesses that retained employees during the COVID-19 pandemic. Initially, eligible employers could only take either PPP or ERC. In 2021, as part of the Consolidated Appropriations Act, Congress amended this provision, allowing businesses to apply for both.
Why can't my CPA do this?
There are over 70,000 pages of tax code; it’s impossible to be an expert on them. ERC is all we do. It’s like the difference between your family doctor and a neurologist. By concentrating on this program, we understand the intricacies and nuances involved in determining your eligibility and accurately calculating your maximum refunds.
Why haven't I heard about ERC before?
The SBA heavily marketed PPP, while ERC is claimed directly through the US Treasury. Along with our bank partners, our mission is to educate you and obtain the payroll tax refund you're entitled to for your business.
How long will it take to get my ERC funds?
ERCS will complete their work within 2–4 weeks of receiving your documents. Depending on the backlog, you’ll receive your refund check from the U.S. Treasury in 4–6 months. The longer you wait, the longer it will take!
What if I've been told my business doesn't qualify?
Our team has already recovered over $2.3B in refunds to which businesses were entitled. Many times, for companies previously told they didn’t qualify, we were able to obtain refunds. It won’t cost you a penny to fill out the brief pre-qualification form and see how much we can recover for you.
