Using the IRS’ ERC Program
Qualify 1 of 3 Different Ways (Revenue Reduction, Shutdowns, Supply Chain Disruptions)
No Cap on Refund. Ie. a 50 Employee Business Can Get $1.3 Million!
Our Rapid Payout option helps you receive the funds you deserve in as little in
as 3 weeks from filing,
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Unfortunately no. This program is only for companies who paid W2 wages to non-owners.
Unfortunately no. This program is only for companies who paid W2 wages to non-owners.
Yes! There are multiple quarters you can qualify for, even if you got a PPP loan. Unfortunately you can’t use the same covered time period that you used for PPP, which might reduce your ERC amount, but you can most definitely qualify for ERC.
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.
What is a “Significant Decline” in Gross Receipts? For 2020 ERC, the quarterly revenue decline needs to be more than 50%. To determine this, employers would compute their 2020 quarterly revenue and compare it to the same quarter for 2019. For 2021 ERC, the quarterly revenue decline needs to be more than 20%.
Gross receipts are all revenue, regardless of form, received or accumulated from any source, such as product or service sales, interest, dividends, rents, royalties, fees, or commissions, fewer returns, and allowances.
The Employee Retention Credit (ERC) – sometimes called the Employee Retention Tax Credit or ERTC – is a refundable tax credit for businesses and tax-exempt organizations.
The ERC is funded by the United States government, specifically the IRS. This money is in addition to the PPP money that employer may have received.
Most employers can expect to receive their ERTC refund within six months to a year after filing their return.
To complete your tax credit, we’ll work with you and your CPA to get the following documents:
Nope! There is nothing to repay with a tax credit. This is not a loan.
We are generally telling clients between 5-14 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 5-14 month range.
There is no limit on the funds to this program. Some estimate the government may pay nearly $1 trillion.
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.
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.
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.
