possibly the most lucrative 15 minutes you will spend all year
Fill out this simple form and talk to one of our experts.
There is no charge for the call and no obligation.
possibly the most lucrative 15 minutes you will spend all year
Fill out this simple form and
talk to one of our experts.
There is no charge for the call
and no obligation.
What is the Employee Retention Credit (ERC)
ERC is a stimulus program designed to help those businesses that were able to retain their employees during the Covid-19 pandemic. Established by the CARES Act, it is a refundable tax credit -- a grant, not a loan -- that you can claim for your business. The ERC is available to both small and mid-sized businesses. It is based on qualified wages and healthcare paid to employees.
Who qualifies for the Employee Retention Credit?
Employers that experienced partial shutdowns due to government orders limiting commerce, travel or group meetings; or that experienced significant declines in quarterly gross receipts (as compared to their quarterly gross receipts in 2019) due to the pandemic are eligible employers under this program.
What time period does the program cover?
The program began on March 13th, 2020 and ends on September 30, 2021, for eligible employers. The statute of limitations to apply for the 2020 ERC does not close until April 15, 2024. The statute of limitations to apply for the 2021 ERCs does not close until April 15, 2025.
If I already received PPP can I still get ERC?
Yes. Under the Consolidated Appropriations Act, businesses can now qualify for the ERC even if they already received a PPP loan. Note, though, that the ERC will only apply to wages not used for the PPP.
Does my business qualify even if there wasn't a decline in revenue?
Yes, If you had a change in business operations and answer yes to one of the following: Change in business hours, Partial or full suspension, Reduction in services offered, Reduction in workforce, A disruption in your business (division or department closures), Inability to visit a client's job site, Suppliers were unable to make deliveries, Additional spacing requirements due to social distancing, Change in job roles/functions, Tasks or work that couldn't be done from home, Lack of Travel or Lack of Group Meetings.
Can I still apply for ERC?
Yes. The statute of limitations for the 2020 ERC does not close until April 15, 2024. The statute of limitations for the 2021 ERCs does not close until April 15, 2025.
Do I need to pay back ERC?
No. ERC is a refundable tax credit -- a grant, not a loan -- that businesses can claim.
Can I see more about ERC on the IRS website?
Can my CPA handle the ERC filing for me?
Although you are more than welcome to consult with your CPA, we have found that a majority of CPA's do not have the time or expertise to handle this type of filing. Also, most CPA's will charge upfront to handle the filing for their time in billable hours - we don't charge a dime until the money is in your account. The ERC stimulus is extremely complex, and contains over 300 pages of knowledge to even begin understanding the bill, let alone the expertise required submit a proper filing. If your accountant or CPA told you, that your business does not qualify for ERC - reach out to us immediately! We have found that over 80% of businesses in this situation ACTUALLY DO QUALIFY The ERC underwent several changes and has many technical details, including how to determine qualified wages, which employees are eligible, and more. Your business' specific case might require more intensive review and analysis that your CPA is not qualified to make. The program is complex and might leave you with many unanswered questions if you choose to file with your standard CPA.
