The program began on March 13th, 2020 and ends on September 30, 2021, for eligible employers. You can apply for refunds for 2020 and 2021 after December 31st of this year, into 2022 and 2023. And potentially beyond then too. We have clients who received refunds only, and others that, in addition to refunds, also qualified to continue receiving ERC in every payroll they process through December 31, 2021, at about 30% of their payroll cost. We have clients who have received refunds from $100,000 to $6 million.

Unfortunately no. This program is only for companies who paid W2 wages to non-owners.

It doesn’t matter, because this is not a loan – it’s a tax credit. There are no credit checks, collateral, or personal guarantees required.

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.

Your business qualifies for the ERC, if it falls under one of the following:
1. 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.:
2. Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.

Yes. To qualify, your business must meet either one of the following criteria:
1. Experienced a decline in gross receipts by 20%, or
2. Had to change business operations due to government orders
3. Many items are considered as changes in business operations, including shifts in job roles and the purchase of extra protective equipment.

Unfortunately no. This program is only for companies who paid W2 wages to non-owners.

Yes! It’s called the “Employee Retention” credit, not the “Revenue Reduction” credit. It’s intended to help out the businesses that kept people employed during the hard times of pandemic, so you can qualify even if your revenue went up. You’ll need to qualify using one of the other qualification checks though – shutdowns / mandates or supply chain disruption.

For most businesses this will be open into 2024 (unless they change the rules again). It’s open as long as you can file amended 941-X returns, which is the later of 3 years from the date you filed your original return, or 2 years from the date you paid the payroll tax.

It doesn’t matter, because this is not a loan – it’s a tax credit. There are no credit checks, collateral, or personal guarantees required.

Yes, there is a possibility. It depends on when the business closed.

To complete your tax credit, we’ll work with you and your CPA to get the following documents:
*Payroll Journals outlining all payments, deductions, contributions and taxes for each employee for each paycheck during your ERC eligibility period.
*Filed 941, 943 or 944 payroll reports.
*Profit and Loss Statements (P&Ls) for 2020 and 2021
*Tax returns for 2020 and 2021
*PPP Loan Forgiveness Application (if applicable)

The program began on March 13th, 2020 and ends on September 30, 2021, for eligible employers.
You can apply for refunds for 2020 and 2021 after December 31st of this year, into 2022 and 2023. And potentially beyond then too.
We have clients who received refunds only, and others that, in addition to refunds, also qualified to continue receiving ERC in every payroll they process through December 31, 2021, at about 30% of their payroll cost.
We have clients who have received refunds from $100,000 to $6 million.

The ERC credit is not actually considered taxable income for federal tax purposes. But what it might do is reduce your company’s deductible wage expenses by the tax credit amount, which will most likely increase your net profit, and therefore what you pay taxes on. Please provide the credit to your CPA or tax preparer for what to do.

Nope! There is nothing to repay with a tax credit. This is not a loan.

We are generally telling clients between 7-9 months. We take a few weeks to do the work, and the IRS is variable in how long it’s taking to process, but we’re seeing in the 7-9 month range.

There is no set amount…

If you owe back taxes on your account, the IRS will deduct the amount you owe in back taxes from the credit amount, and will pay you the difference.

Absolutely not! The IRS created this program and doubled-down on making it easier and more lucrative for businesses, so they really want you to file and use it.