Get up to $26,000 per Employee
BILLIONS in ERC Claimed for Businesses Like Yours
What exactly is the Employee Retention Credit (ERC)?
The ERC is a relief program created to assist businesses that managed to keep their workforce intact throughout the Covid-19 pandemic.
Established under the CARES Act, this is a refundable tax credit that eligible businesses can apply for. It’s open to both small and medium-sized enterprises and is determined by qualified employee wages and healthcare expenses.
Up to $26,000 per worker
Accessible for the year 2020 and the initial three quarters of 2021
Eligibility is based on a Decrease in Revenue or Complete or Partial Halting of Operations because of Government Orders
No funding cap
ERC is a tax credit that can be refunded
How can you determine if your business meets the criteria for eligibility?
To be eligible, your business must have experienced negative impacts in one of the following ways:
Government Mandated Closures
Check if your business faced partial or complete shutdowns mandated by governmental authorities during either 2020 or 2021. This includes restrictions on operations due to commerce limitations, travel bans, or limitations on group gatherings.
Gross Receipts Comparison
Assess whether your business experienced a reduction in gross receipts. Note that the criteria for 2020 and 2021 differ, but both involve comparing the current quarter's financial performance to pre-COVID-19 amounts from 2019.
Quarterly Eligibility
Keep in mind that eligibility for the Employee Retention Credit (ERC) can vary from one quarter to another during the COVID-19 pandemic period. Ensure that your business qualifies for each specific period.
ERC and PPP Eligibility Update (2021)
Understand the interaction between the ERC and Paycheck Protection Program (PPP) loans. Initially, under the CARES Act of 2020, businesses that had received PPP loans were ineligible for the ERC. However, with new legislation in 2021, employers can now qualify for both programs, but the ERC cannot be applied to the same wages covered by PPP.
Seek Professional Advice
To effectively navigate the complex eligibility criteria, it is advisable to consult with a professional accountant or tax advisor who can provide customized guidance for your specific business situation. Consult with us, and let us assist you.
We understand your eligibility, and we guarantee it
Thanks to amendments in the Consolidated Appropriations Act in 2021, the Employee Retention Tax Credit (ERTC) now offers up to $5,000 per employee for the year 2020 and up to $7,000 per employee for each of the first three quarters in 2021.
Whether your business is large or small, you can receive up to $26,000 per employee, and over 90% of all companies are eligible for this tax credit program.
This incentive provides a more significant benefit to eligible employers compared to the Paycheck Protection Program because you are not obligated to use it for business expenses. It’s not a loan; it’s yours to keep.
Take Advantage of This Opportunity!
You won’t be burdened with repayment because it’s not a loan. Don’t miss out on this incredible chance to benefit!
Rest Assured: BILLIONS in ERC Successfully Claimed for Businesses Similar to Yours
Forget What You Think You Know About ERC.
It’s Time to Rethink Everything You Thought You Knew! Step into a World of Exciting Possibilities with the Employee Retention Credit and Unlock a Wealth of Benefits You Never Imagined Possible
- Qualify & Submit at No Cost
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Frequently Ask Questions.
This section is designed to provide answers to the most commonly asked questions about the Employee Retention Credit (ERC) program, offering visitors more information and clarity.
To qualify for the Employee Retention Credit (ERC), your business must have been negatively affected in either of the following ways:
Your business was partially or fully shut down by a government authority during 2020 or 2021. This includes restrictions on your operations due to commerce limitations, travel restrictions, or group meeting limitations.
The gross receipt reduction criteria vary for 2020 and 2021 but are measured by comparing the current quarter's revenue to the revenue from the same quarter in 2019, before the COVID-19 pandemic.
It's important to note that a business may be eligible for the ERC in one quarter but not in another.
Initially, under the CARES Act of 2020, businesses were not eligible for the ERC if they had already received a Paycheck Protection Program (PPP) loan. However, with new legislation in 2021, employers are now eligible to apply for both programs.
The ERC program applies to 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 established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. It is designed to assist businesses that continued paying employees during COVID-19-related shutdowns or experienced a significant decline in gross receipts from March 13, 2020, through September 30, 2021. This credit alleviates the financial burden caused by the pandemic by offsetting employment taxes paid by employers.
The deadline for claiming the ERC for eligible quarters in 2020 is April 15, 2024, and for eligible quarters in 2021, it is April 15, 2025.
The ERC refund will be issued as a cash payment mailed to you by the IRS. The IRS will send separate checks based on eligible quarters, potentially resulting in multiple checks (e.g., one check per quarter). It's important to note that the IRS may also apply the funds as a credit toward any outstanding taxes.
Looking to expedite your Employee Retention Credit (ERC) refunds? We've got you covered!
Don't wait in the queue – send us an email at erc@ercsolutionshub.com right away to kickstart the process of getting your ERC refunds in the fastest way possible. Our team of experts is here to streamline your refund journey and ensure you receive your funds promptly.
Why choose us?
- Experienced ERC professionals who know the ins and outs of the program.
- Swift and efficient processing to get your refunds to you as soon as possible.
- Hassle-free assistance to navigate the ERC refund process effortlessly.
Your ERC refunds are waiting – reach out to us today at erc@ercsolutionshub.com, and let's get your money back in your hands, where it belongs!
Yes, you will need to amend your income tax returns when applying for the Employee Retention Credit (ERC). The Internal Revenue Service (IRS) requires that your company's wage expense deduction on your income tax return be reduced by the amount of the ERC for the applicable tax year, whether it's 2020 or 2021. To ensure accurate reporting and to correct any overstated wage deductions, you must file an amended federal and state income tax return for the taxable year during which the ERC credit applies.
It's essential to note that any interest paid to you by the IRS as part of the ERC refund should also be reported on your income tax filing. Compliance with these filing requirements is crucial to maintain accurate tax records and to fully benefit from the ERC program.
The IRS audit period for the Employee Retention Credit (ERC) varies depending on the tax year and quarters:
- For tax year 2020 and the first two quarters (Q1 and Q2) of 2021, the audit period is 3 years.
- For the third quarter (Q3) of 2021, the audit period extends to 5 years."
This information outlines the duration during which the IRS may audit your ERC claims for compliance and accuracy.
The IRS issued these warnings due to the proliferation of numerous fly-by-night, self-proclaimed ERC 'experts' or 'consultants' who are misrepresenting their qualifications and the intricacies of the ERC program to employers. The Employee Retention Credit (ERC) is a complex tax program that demands a profound level of expertise and an in-depth understanding of its nuances. When selecting an ERC service provider, it's essential to seek out companies with a demonstrated and verifiable track record of success. Additionally, it's crucial to be cautious of warning signs such as exorbitant upfront costs and the absence of Certified Public Accountants (CPAs) or tax professionals on staff.
Unlock the full potential of the Employee Retention Credit (ERC) and maximize your benefits! You can claim a generous ERC credit of up to $26,000 per eligible employee.
In the tax year 2020, seize the opportunity to claim up to 50% of qualified wages per employee, with a tantalizing maximum credit of $5,000 per employee for the entire year. Fast forward to the tax year 2021, and you can soar even higher by claiming up to a staggering 70% of qualified wages per employee per quarter, resulting in an astounding maximum credit of $21,000 per employee for the year.
It's important to note that for most businesses, the window of opportunity extends to the first three quarters (Q1 to Q3) of 2021. Don't miss out on this chance to supercharge your ERC benefits and claim what's rightfully yours!
The timeline for receiving your Employee Retention Credit (ERC) refund can vary, as it depends on the IRS's workload and processing times. Typically, we have observed that clients receive their refunds within a range of 4 to 10 months from the date of filing. However, it's important to note that the exact timeline may vary based on the IRS's specific processes and workload at the time of processing.
Looking to expedite your Employee Retention Credit (ERC) refunds? We've got you covered!
Don't wait in the queue – send us an email at erc@ercsolutionshub.com right away to kickstart the process of getting your ERC refunds in the fastest way possible. Our team of experts is here to streamline your refund journey and ensure you receive your funds promptly.
Why choose us?
- Experienced ERC professionals who know the ins and outs of the program.
- Swift and efficient processing to get your refunds to you as soon as possible.
- Hassle-free assistance to navigate the ERC refund process effortlessly.
Your ERC refunds are waiting – reach out to us today at erc@ercsolutionshub.com, and let's get your money back in your hands, where it belongs!
Unlike traditional loans or specific business funding sources, the Employee Retention Credit (ERC) is a fully refundable tax credit that offers unparalleled flexibility. It comes without any predefined limitations on how you can allocate or spend your refund. Essentially, businesses that qualify for the ERC have the freedom to utilize their refund in any manner that aligns with their unique financial needs and priorities.
This flexibility empowers businesses to make decisions that best support their operations, whether it's reinvesting in their workforce, covering essential expenses, expanding their operations, or pursuing other growth opportunities. The ERC stands as a versatile financial resource designed to provide businesses with the agility and autonomy to navigate economic challenges on their terms.
No, you won't have to repay the ERC. Unlike traditional loans, the ERC is a fully refundable tax credit, and it does not come with any repayment obligations. Once you receive the ERC refund, it is yours to keep.
However, it's essential to note that in the event of an IRS audit, the IRS has the authority to claw back the funds if it is determined that the ERC was claimed inaccurately or fraudulently. Therefore, it's crucial to ensure that your ERC claims are accurate and compliant with the program's requirements to avoid any potential clawback situations.
In summary, while you do not need to repay the ERC as you would with a loan, it's essential to maintain proper documentation and adhere to the program's guidelines to safeguard your eligibility and prevent any future complications.
Yes, your business can qualify for the Employee Retention Credit (ERC) even if it has previously received a PPP loan. According to the Consolidated Appropriations Act (CAA), employers are eligible to claim ERC on wages that were not paid using the proceeds of a PPP loan. However, it's crucial to understand that you cannot use the same wages to calculate both ERC and PPP loan forgiveness. This practice, often referred to as 'double dipping,' is not allowed by the IRS.
In summary, having received a PPP loan does not disqualify your business from claiming the ERC, but careful consideration and proper allocation of wages are necessary to comply with IRS guidelines and avoid double-dipping scenarios.
Absolutely, your business can qualify for the Employee Retention Credit (ERC) if it has experienced a significant decline in gross receipts. The criteria for a significant decline in gross receipts vary between the years 2020 and 2021.
In 2020, a significant decline is defined as a substantial 50% decrease in gross receipts compared to the same calendar quarter in 2019.
In 2021, a significant decline is defined as a noticeable 20% decrease in gross receipts compared to the same calendar quarter in 2019.
Meeting these specific decline thresholds is a key factor in determining your eligibility for the ERC, and it's crucial to ensure that your business aligns with these requirements to benefit from this valuable tax credit.
o qualify for the Employee Retention Credit (ERC), an employer must meet one of the following requirements:
Significant Decline in Gross Receipts: A business qualifies if it experiences a substantial decline in gross receipts for any eligible quarter in 2020 or 2021. In 2020, a significant decline is defined as a 50% reduction in revenue during any quarter compared to the same quarter in 2019. In 2021, a significant decline is defined as a 20% reduction in revenue during any quarter compared to the same quarter in 2019.
Full or Partial Suspension of Operations: An employer can also qualify for the ERC if its operations are fully or partially suspended due to orders from the federal government or a state government with jurisdiction over the employer. These orders must limit commerce, travel, or group meetings related to COVID-19.
Meeting either of these criteria is essential to determine eligibility for the ERC, and businesses must ensure that they meet these specific requirements to access this valuable tax credit.
No, self-employed individuals are not eligible to apply for the Employee Retention Credit (ERC). This tax credit is specifically designed to benefit businesses that employ W-2 employees. Self-employed individuals, including those who are majority owners of their businesses, cannot claim their own wages for ERC purposes, even if they are on a W-2 wage.
The ERC program is primarily directed at supporting businesses that have employees on payroll, and it does not extend to self-employed individuals or sole proprietors. Therefore, it's important for self-employed individuals to explore other relief options that may be available to them.
No, you cannot apply for the Employee Retention Credit (ERC) if you have 1099 employees. The ERC is specifically designed to provide tax credit benefits for businesses with W-2 employees. The credit is based on wages paid to W-2 employees and does not cover payments made to independent contractors or those classified as 1099 employees.
To qualify for the ERC, you must have W-2 employees on your payroll, and the credit is calculated based on their eligible wages. Independent contractors, often referred to as 1099 employees, fall outside the scope of this tax credit program. Therefore, businesses with only 1099 employees should explore other relief options or programs that may be applicable to their situation.
Yes, you can apply for the Employee Retention Credit (ERC) even if you have family members on your payroll. However, there is a restriction regarding claiming ERC on wages paid to family members of majority owners. This restriction includes immediate family members as well as extended family members such as in-laws, aunts, uncles, and cousins.
In essence, you can generally claim ERC for wages paid to family members who are not considered majority owners of the business. This allows businesses to access the ERC benefit while still maintaining employment for family members on their payroll. It's important to be aware of these guidelines and ensure compliance when applying for the ERC.
Yes, your business can still qualify for the Employee Retention Credit (ERC) even if its revenue increased. The key factor for eligibility is whether your business experienced a full or partial suspension of operations. If your business had to suspend its operations, either fully or partially, due to orders from the federal government or a state government with jurisdiction over the employer, limiting commerce, travel, or group meetings related to COVID-19, you may still be eligible for the ERC.
The ERC is not solely based on revenue decline; it also considers the impact of government orders on your business operations. This flexibility allows businesses that experienced operational disruptions to access the ERC, regardless of their revenue trajectory during the pandemic.
es, your business can still qualify for the Employee Retention Credit (ERC) even if it did not incur a 20% decline in gross receipts. There are other criteria that make a business eligible for the ERC:
Government Mandated Shutdown: If a government authority mandated a partial or full shutdown of your business at any point in 2020 or 2021, you may qualify for the ERC. This includes scenarios where operations were limited by commerce, travel restrictions, or restrictions on group meetings.
Different Gross Receipts Criteria: The gross receipt reduction criteria vary between 2020 and 2021. It is measured against the current quarter compared to pre-COVID amounts in 2019. This means that if there was a significant decline in your current quarter's gross receipts compared to the same quarter in 2019, you may still be eligible for the ERC.
These additional criteria provide businesses with alternative pathways to qualify for the ERC, even if they did not experience a specific decline in gross receipts. It's important to carefully review and assess all eligibility criteria to determine if your business qualifies for this valuable tax credit."
The Employee Retention Credit (ERC) relies on qualified wages as the foundation for its calculation. Qualified wages encompass a range of compensation items that are subject to Federal Insurance Contributions Act (FICA) taxes. These qualified wages can include various forms of remuneration, such as salaries, hourly wages, bonuses, vacation pay, and certain health plan expenses, among other eligible forms of compensation.
It's important to note that the determination of qualified wages can vary based on the specific circumstances and eligibility criteria of the ERC program.
The Employee Retention Credit (ERC) program spans from March 13th, 2020, and extends until September 30, 2021, for eligible employers. Refunds for qualifying periods in 2020 and 2021 can be applied for after December 31st of the respective years, extending into 2022 and 2023. Furthermore, there is potential for the program to extend beyond this timeframe.
It's worth noting that some businesses have received refunds exclusively, while others have not only received refunds but also qualified to continue receiving ERC benefits in every payroll cycle up to December 31, 2021, covering approximately 30% of their payroll costs. The refund amounts have varied, with some clients receiving refunds ranging from $100,000 to as much as $6 million.
The ERC program offers a substantial window of opportunity for eligible employers to access valuable tax credits and financial relief during these challenging times.
Yes, businesses can indeed qualify for the Employee Retention Credit (ERC) even if they have already received a Paycheck Protection Program (PPP) loan. This eligibility update was introduced under the Consolidated Appropriations Act. However, it's essential to understand that the ERC applies to wages that were not utilized for PPP loan forgiveness.
In other words, while having received a PPP loan does not disqualify you from accessing the ERC, you cannot claim the same wages for both the ERC and PPP loan forgiveness. This practice, often referred to as 'double dipping,' is not permitted by the IRS.
So, businesses with PPP loans can still benefit from the ERC, provided they adhere to the guidelines and avoid any overlap in wage calculations between the two relief programs.
