You can qualify even if you received PPP
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The ERC program (Employee retention credit) is a refundable tax credit designed to assist businesses that retained their employees during the pandemic.
It provides direct financial relief and encourages workforce retention for economic stability and recovery.
Trustworthy, experienced, and smart. This is the team I trust to make my business more efficient.
After having mixed experiences with prior cost reduction firms, we reluctantly gave it a try. They have exceeded all of our expectations and driven substantial savings to our company just months into the engagement. In hindsight, I wish..
They've been very successful in reducing our expense without switching vendors. Their leadership is very professional and extremely competent.
Any questions? We're here to help.
To qualify, your business must have been negatively impacted in either of the following ways:
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
Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.
A business can be eligible for one quarter and not another.
Initially, under the CARES Act of 2020, businesses were not able to qualify for the ERC if they had already received a Paycheck Protection Program (PPP) loan. With new legislation in 2021, employers are now eligible for both programs.
The ERC program covers eligible wages paid to W-2 employees from March 13th, 2020 through September 30th, 2021 for eligible employers.
The employee retention credit (ERC) is a refundable payroll tax credit that was put into law through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The ERC is for businesses that continued to pay employees while shut down due to COVID -19 restrictions or had significant decline in gross receipts from March 13, 2020 to September 30, 2021. This credit offsets employment taxes paid by an employer to offer relief from the COVID-19 pandemic.
The deadline for claiming the ERC for eligible quarters in 2020 is April 15, 2024. The deadline for claiming the ERC for eligible quarters in 2021 is April 15, 2025.
The ERC will be issued in the form of a cash refund that you will receive in the mail from the IRS. The IRS will send checks based on qualifying quarters. You may receivce several checks (e.g., one check per quarter). The IRS reserves the right to use funds as a credit towards back taxes.
The IRS issued these warnings, as there are many fly-by-night, so-called ERC “experts” or “consultants” that are misrepresenting their experiences and the parameters of the ERC program to employers. The ERC is a complicated tax program that requires deep expertise and understand of the nuances. When choosing an ERC company look for companies with a proven real track record and watch out for red flags (e..g, large upfront cost, no CPAs or tax professionals on staff)
While the timeline may vary based on the IRS workload, we are seeing clients receive refunds within a 4-10 month timeframe from filing. The timeline may vary as the IRS’s process varies.
Yes. Under the Consolidated Appropriations Act (CAA), businesses can qualify for the ERC even if they already received a PPP loan. Employers are allowed to claim ERC on wages that were not paid with the proceeds of a PPP loan. It is important to note that you can’t use wages to calculate ERC that were used to qualify for PPP loan forgiveness. This is known as “double dipping” and is not permitted by the IRS.
Yes! Your business will be able to qualify for ERC if you had a full or partial suspension of operations.
** IF YOU ONLY HAVE 1099 EMPLOYEES - PLEASE DO NOT BOOK AN APPOINTMENT; YOU WILL NOT QUALIFY FOR ERC**
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