No ERC Claims are expected
be permitted after January 1, 2024
What Is ERC?
The Employee Retention Credit (ERC) is a refundable tax credit designed to support businesses that maintained employee payments during mandated government closures or experienced substantial drops in gross revenues between March 13, 2020, and December 31, 2021, due to the COVID-19 pandemic. Eligible employers that think they qualify have the option to claim the ERC on an initial or amended employment tax return for any period falling within the specified dates.
Under new legislation no new ERC claims are expected to be permitted after January 31, 2024.
ERC Simplified
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UP TO $26,000 PER EMPLOYEE
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AVAILABLE FOR 2020 & Q1 - Q3 2021
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QUALIFY WITH DECREASED REVENUE OR COVID EVENT
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NO LIMIT ON FUNDING (ERC IS NOT A LOAN)
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ERC IS A REFUNDABLE TAX CREDIT
Am I eligible for a refund?
Under new legislation no new ERC claims are expected to be permitted after January 31, 2024.
Supply Disruptions
Circumstances caused disruptions in your supply chain that affected your business' ability to operate.
Revenue Reductions
In 2020-2021, you lost 20% - 50% of gross receipts revenue as compared to the same 2019 quarter.
Operation Suspensions
Events that arose from the COVID-19 pandemic caused your business to lose revenue.
Services
If you believe you meet the ERC program requirements, we've made it easy to file your claim with the IRS.
Step 1
Questionnaire Discussion
Connect with with one of our friendly reps that will quickly answer your questions and guide you through a basic questionnaire to help you estimate your refund and determine eligibility.
Step 2
Upload your docs
Upload your relevant financial documents and then sit back and relax while our friendly staff work to analyze and evaluate your documents and calculate the maximum amount of credit you could receive based on the IRS’s rules and guidance.
Step 3
Get your check!
After signing and approving the final credit amount, our team combined with our easy software portal will help you file your claim with the IRS and communicate to ensure that you receive your full credit. You just need to wait for your check to arrive!
Frequently Asked Questions
Do I have to repay the ERC Credit?
No. This is not a loan. It's a refundable tax credit. When we file your ERC claim we request a refund check for you.
How much do you charge?
Our service charge is based on a percentage of the credit recovered. We calculate and provide our fee with our free analysis. Since we are typically able to recover 10-20% more than someone less familiar with the program, our fee is very affordable. Just like a good CPA, using the right team for this process pays for itself.
Can't I just have my CPA file? Why would I use the ERC Association?
Of course. The challenge is the ERC credit is taken on your payroll returns and not through your business income tax returns, which is what most CPA's handle. Because of this most CPA's don't process this credit, unless they process your payroll in house. This is also a big reason why this credit is so underutilized. Since CPA's don't typically handle it and they are the tax experts, it has mostly fallen in a middle ground where few are able to effectively process the credit. Interestingly, we receive a large portion of our clients from CPA's.
Can I get ERC Funds if I already took the PPP?
Yes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, modified the ERC credit rules. One of the modifications included allowing a company to have a PPP loan and still take advantage of the ERC credit. However, you can't use the same dollar for dollar funds. We take this into account when processing your ERC credit.
My revenue went up in 2020, am I still eligible for the ERC program?
Yes! There are two possible qualifications for 2020: revenue reduction, or a "full or partial shutdown of your business due to COVID-19". Specifically the IRS describes this as "A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings." Below are several examples of eligible events:
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Example 1: A restaurant must close or limit its on-site dining. Such as having to close down every other table, due to COVID-19 restrictions.
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Example 2: A business that needs to meet with clients in person and has to cancel meetings due to COVID-19 restrictions.
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Example 3: A business has to reduce their operating hours because COVID-19 restrictions and cleaning requirements.
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Example 4: A business had delayed production timelines caused by supply chain disruptions.*Supply chain is not likely to be an eligible reason.
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Example 5: A business with a planned event has to cancel that event, or restrict the amount of people who can attend due to COVID-19 restrictions.
Is the ERC program still available?
Under new legislation no new ERC claims are expected to be permitted after January 31, 2024.
I'm a CPA or a payroll company, can I refer my clients to the ERC Association?
Yes. We also offer a referral/affiliate program. To learn more contact us!
Will the ERC funds run out?
This is not a lending program - tax refunds are issued by the US Treasury. Therefore, all eligible employers will receive the funds.
How will I make payment?
We understand your refund check may not arrive for several months (20 weeks minimum according to IRS documentation), so we offer two payment options - you may pay your fee upfront at a discount - or - the full fee can be deducted from your refund once received. Upfront payments can be completed by credit card. Regardless our fee is covered by our 100% Money Back Guarantee. If the IRS does not release the credit claimed for any reason, we will refund any payments made.
I'm getting more in ERC Credit than I paid in taxes?
Remember that this program is taken according to payroll taxes paid, not on income taxes. ERC funds not applied towards owed payroll taxes are treated as an 'overdeposit' of taxes that will be requested as a refund check from the IRS.
As an owner do my wages, or the wages of any family member I employ qualify?
Maybe. Wages of owners who have majority ownership, defined as over 50%, do not qualify, nor do the W2 wages of any immediate family members of the owner. In the case an owner has less than 50% ownership, their W2 wages qualify, as do the W2 wages paid to immediate family members.
Can I qualify for the ERC if I'm self employed?
No, if you are majority owner (over 50%) of your company then your wages do not qualify.
How long does it take to get my ERC Credit?
This is how the process works: you send us the required documents and we process an analysis at no charge. The process from start to finish usually happens in 2-3 weeks. If you wish to move forward, you will select your desired payment option and we file your claim. Once filed, refunds are released based on IRS backlog. Currently, the IRS has stipulated a 20 week minimum turnaround on the ERC refunds.
Is the ERC Credit taxable?
The ERC credit is not considered income for federal income tax purposes, but you must reduce any deductible wage expenses by the amount of the credit. Please provide the credit information to your CPA for tax purposes.
Do I need to file the ERC credits received on my tax returns?
Yes, the ERC funds will need to be reported on your income tax return. For more information, please refer to this documentation.
Will anyone from the ERC Association give me tax advice?
No, the ERC Association nor its associates or affiliates do not provide tax advice of any kind. If you are seeking specific tax advice, we encourage you speak with your trusted CPA or other tax professional.
Still Have a Question? Call us now!