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Employee Retention Credit Frequently Asked Questions
The Employment Retention Credit (ERC) is a stimulus program designed to help those businesses that were able to retain their employees during the Covid-19 pandemic. It was established by the CARES Act and is a refundable tax credit and not a loan. The ERC is available to both small and mid-sized businesses. It is based on qualified wages and healthcare paid to employees.
No the ERC is a refundable tax credit, similar to a grant, and is not required to be paid back.
Unlike the PPP that many businesses received already, there are not any restrictions on how businesses can utilize ERC funds.
Employers that experienced partial shutdowns due to government orders limiting commerce, travel or group meetings; or that experienced significant declines in quarterly gross receipts (as compared to their quarterly gross receipts in 2019) due to the pandemic are eligible employers under this program.
The program began on March 13th, 2020 and ends on September 30, 2021, for eligible employers. However, 2020 is no longer eligible to be claimed based on the time ran out. The statute of limitations to apply for the 2021 ERCs does not close until April 15, 2025.
Good news! Yes, you can. Yes. The statute of limitations for the 2020 ERC does not close until April 15, 2024. The statute of limitations for the 2021 ERC does not close until April 15, 2025.
ERC is a refundable tax credit similar to a grant and can return up to $21,000/employee ($10,000 is the average for companies that received PPP, $20,000 is the average for businesses that didn’t)
Unfortunately, no. The IRS does not allow W2 wages from business owners to count, so if you are the only employee, you would not qualify to file. Other restrictions include immediate family members.
No that is not correct information. Businesses that received PPP can also receive ERC funding since the CARES Act was amended in 2021.
Depends, If you had a change in business operations and answer yes to one of the following:
- Change in business hours
- Partial or full suspension
- Reduction in services offered
- Reduction in workforce
- A disruption in your business (division or department closures)
- Inability to visit a client’s job site
- Additional spacing requirements due to social distancing
- Change in job roles/functions
- Tasks or work that couldn’t be done from home
- Lack of Travel or Lack of Group Meetings
Many have been told the same as at one time you would not of but based on the new updates, we are finding that 80% of the businesses that have been told they are not eligible, actually do when they speak to an expert. Isn't it worth 15 minutes of your time to see if you fall into that 80%?
The ERC tax credit is a legitimate tax credit as you can see on the IRS site.
These articles will provide additional background on recent developments with the ERC program:
We have partnered with an ERC funding Tax Specialty Group that are CPAs and attorneys themselves. They follow all the regulations that are required. The scam companies have been removed, thankfully, because there is a lot more work and compliance requirements.
We have partnered with Strategic Tax Planning Group. They have CPAs and attorneys on staff and are overseeing the claim process.
After validating their credentials we found they are top of the line with ERC funding. They have worked closely with the IRS for many years and have licensed CPA professionals handling the ERC claims. They are also one of the only companies left that will file a claim for businesses as they are tried and true and have withstood the test of time including the IRS Moratorium that was placed into affect about 18 months ago.
So, if you're looking for help learning about your Employment Retention Credit look no further!
Contact us today and let us show you how we can help make this process easier and get the ERC funding you are eligible for. It could be waiting for you.
DONT WAIT ! IT IS NOT TOO LATE AND FUNDING IS STILL AVAILABLE -
DEADLINE IS APRIL 15 2025
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