WHAT IS THE EMPLOYEE RETENTION CREDIT (ERC)?
WHAT IS THE EMPLOYEE RETENTION CREDIT (ERC)?
ERC is a refundable payroll tax credit.
This credit rewards businesses for keeping employees on their payroll during the COVID-19 pandemic in 2020 and 2021.
Born out of the same CARES Act as PPP, its aim is to provide economic relief for small and medium businesses. Initially, eligible employers could only take either PPP or ERC. In 2021, as part of the Consolidated Appropriations Act, Congress amended this provision, allowing businesses to apply for both.
For the 2020 program, the ERC is equal to 50% of qualified wages (including allocable qualified health plan expenses) that eligible employers pay their employees. This applies to wages paid after 3/12/2020 and before 1/1/2021. The maximum amount of wages taken into account with respect to each employee for all calendar quarters is $10,000, so that the maximum credit for an employee is $5,000.
For the 2021 program, the credit is increased to 70%, and the limit is $10,000 per quarter. This means the annual maximum for an employee is $26,000.
This is real money to put back into your company.
HOW DO I KNOW IF MY BUSINESS QUALIFIES?
HOW DO I KNOW IF MY BUSINESS QUALIFIES?
The IRS states that 70% – 80% of small and medium businesses do qualify.
If your business experienced a reduction of income greater than 20% comparing to 2019 you qualify !
If your business experienced disruptions to commerce, travel, or group meetings, you may qualify!
This may include supply chain disruptions, price increases, staffing shortages, difficulty hiring, reduced hours, reduction in goods or services offered, unable to travel, or attend conventions.
Our team is dedicated in the nuances of the rules and will maximize your ERC while strictly comply with the IRS guidelines.
Generally speaking you qualify if your business:
- Was negatively impacted by Covid
- Experienced a reduction of income greater than 20% comparing to 2019
- Was limited in commerce, travel, or group meetings
- Has an EIN and paid federal payroll taxes
- Has not yet claimed the refund
HOW IS ERC DIFFERENT FROM THE PAYCHECK PROTECTION PROGRAM (PPP)?
HOW IS ERC DIFFERENT FROM THE PAYCHECK PROTECTION PROGRAM (PPP)?
PPP was a forgivable loan.
ERC returns the payroll taxes that your business has already paid.
Once you receive the ERC funds from the US Treasury, no further action is required on your part. You have nothing to pay back!
WHY HAVEN’T I HEARD ABOUT ERC BEFORE?
WHY HAVEN’T I HEARD ABOUT ERC BEFORE?
PPP was heavily marketed by the SBA, while ERC is claimed directly through the US Treasury. It’s our mission to educate you and obtain for your business the payroll tax refund that it’s entitled to.
WHY CAN’T MY CPA DO THIS FOR ME?
WHY CAN’T MY CPA DO THIS FOR ME?
There are over 70,000 pages of tax code; it’s impossible to be an expert on all of them. ERC is all we do. Paperwork required to claim ERC funds is very complex and highly specialized. Many CPAs are referring their clients to our business because most don’t have expertise to handle this.We evaluate each company using the IRS guidelines to maximize your credit refund.
WHY CHOOSE ERC EXPERT TO FILE MY ERTC REFUND?
WHY CHOOSE ERC EXPERT TO FILE MY ERTC REFUND?
Unlike some other shady ERC competitors, we don’t charge contingency fees, it is against the law. You will know up front what we’re going to charge you. We will not try to over qualify your refund. Some other ERC companies DO NOT file or sign the 941 x amended forms submitted to the IRS, which would mean they would not be responsible for anything. We do sign them and take responsibility for you and your filing.
DO I HAVE TO PAY THIS BACK?
DO I HAVE TO PAY THIS BACK?
It’s a refund of payroll taxes. It’s the company’s money! There are no limitations on how you use it!
MY BUSINESS WAS PROFITABLE OR DEEMED ESSENTIAL, CAN I STILL QUALIFY?
MY BUSINESS WAS PROFITABLE OR DEEMED ESSENTIAL, CAN I STILL QUALIFY?
Absolutely! Both Essential and Non-essential businesses alike can qualify, and a decline in revenue is not always required. Some of our clients even had increases in sales, but still experienced disruptions or were negatively impacted and did qualify. It’s always a case by case situation. Companies who do claim they qualify anyone are shady! Trust me!!!
HOW MUCH DOES IT COST?
HOW MUCH DOES IT COST?
The initial analysis to determine your eligibility and approximate credit is on a non up- front charge. Once engaged to recover your refunds, our flat fee varies upon many parameters. It’s hard to tell accurately, but from our experience, we see the final cost of our services currently between 8 to15%. You don’t have to pay our fees before you receive your money from the IRS. You pay WHEN you receive the funds!
HOW LONG WILL IT TAKE TO GET MY REFUND ?
HOW LONG WILL IT TAKE TO GET MY REFUND ?
Our work will be completed within about 30 days after receiving your documents. The IRS is currently working through a backlog of amended Form 941 filings. This means you could experience an extended wait time before you receive your refunds. Average wait times are 4 – 14 months for pending applications and 16+ months for new applications. But the IRS has allocated a larger workforce and this backlog shall decline. In the next few months, we may see refunds being processed much quicker. As a matter of fact, we have seen it already with some of our clients who received their refunds within 4 months.
in the next months. We may see refunds being process much quicker soon. Matter of fact we have seen it already with some of our clients who received their refunds within 4 months.
HOW IS THE REFUND CALCULATED?
HOW IS THE REFUND CALCULATED?
Determining the amount that you’re entitled to is an extremely complex accounting and legal process.
Although these are payroll tax credits, what you’ve paid in payroll tax has no bearing on your ERC calculations. The refunds are based on many factors including qualifying quarters, number of employees, hours worked, wages paid and if applicable, PPP loans, group health premiums and participation in other government programs to name a few.
We are specialized in that complex process.It’s why you want to work with us. We are going to get your maximum legitimate refunds!
HOW DO I CHECK THE STATUS OF MY ERC REFUND?
HOW DO I CHECK THE STATUS OF MY ERC REFUND?
To check the status of your refund, you can call the IRS directly at (877) 777-4778. Our team of customer service representatives will be here as well to get updates throughout your refund process.
