FREQUENTLY ASKED QUESTIONS
DO I HAVE TO REPAY THE ERC CREDIT?
No. The ERC is a refundable tax credit, not a loan.
When we file your ERC claim we request a refund check for you.
CAN I STILL APPLY FOR THE EMPLOYEE RETENTION CREDIT IN 2023?
Yes, if your business meets all of the qualifying criteria, you can still apply for the employee retention credit retroactively in 2023.
CAN I GET ERC FUNDS IF I ALREADY RECEIVED PPP FUNDS?
Yes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, modified the ERC credit rules. One of the modifications included allowing a company to have a PPP loan and still take advantage of the ERC credit. However, you can't use the same dollar for dollar funds. We take this into account when processing your ERC credit.
HOW LONG DOES IT TAKE TO GET MY ERC CREDIT?
This is how the process works: you send us the required documents and we process an analysis at no charge. The process from start to finish usually happens in 2-3 weeks. If you wish to move forward, you will select your desired payment option and we file your claim. Once filed, refunds are released based on IRS backlog. Currently, the IRS has stipulated a 20 week minimum turnaround on the ERC refunds.
IS THE ERC CREDIT TAXABLE?
The ERC credit is not considered income for federal income tax purposes, but you must reduce any deductible wage expenses by the amount of the credit.
Please provide the credit information to your CPA for tax purposes.
WILL THE ERC FUNDS RUN OUT?
This is not a lending program - tax refunds are issued by the US Treasury. Therefore, all eligible employers will receive the funds.
That said, businesses have until April, 2024 to amend their 2020 tax filing and until April, 2025 to amend their 2021 filing to apply for the ERC.
HOW MUCH DO YOU CHARGE?
Our service charge is based on a percentage of the credit recovered. We calculate and provide our fee with our free analysis. Since we are typically able to recover 10-20% more than someone less familiar with the program, our fee is very affordable.
Just like a good CPA, using the right team for this process pays for itself.
HOW WILL I MAKE PAYMENT?
We offer two payment options.
Your refund check may not arrive for several months (20 weeks minimum according to IRS documentation), the full fee can be deducted from your refund once received.
You may pay your fee upfront at a discount - Upfront payments can be completed by credit card. Regardless, our fee is covered by our 100% Money Back Guarantee. If the IRS does not release the credit claimed for any reason, we will refund any payments made.
MY REVENUE WENT UP IN 2020, CAN I STILL QUALIFY FOR THE ERC PROGRAM?
Yes! There are two possible qualifications for 2020: revenue reduction, or a "full or partial shutdown of your business due to COVID-19". Specifically the IRS describes this as "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." Below are several examples of qualifying events:
Example 1: A restaurant must close or limit its on-site dining. Such as having to close down every other table, due to COVID-19 restrictions.
Example 2: A business that needs to meet with clients in person and has to cancel meetings due to COVID-19 restrictions.
Example 3: A business has to reduce their operating hours because COVID-19 restrictions and cleaning requirements.
Example 4: A business had delayed production timelines caused by supply chain disruptions.
Example 5: A business with a planned event has to cancel that event, or restrict the amount of people who can attend due to COVID-19 restrictions.
CAN'T I JUST HAVE MY CPA FILE?
Of course. The challenge is the ERC credit is taken on your payroll returns and not through your business income tax returns, which is what most CPA's handle. Because of this most CPA's don't process this credit, unless they process your payroll in house. This is also a big reason why this credit is so underutilized. Since CPA's don't typically handle it and they are the tax experts, it has mostly fallen in a middle ground where few are able to effectively process the credit. Interestingly, we receive a large portion of our clients from CPA's.
Our Specialists have decades of payroll experience, which has allowed us to specifically focus to understanding and maximizing the ERC program. In our experience we have found that due to the complexity (the ERC tax code is over 200 pages) and time investment necessary to understand the ERC program, very few are able to effectively maximize this sizeable credit for your business.
AS AN OWNER, DO MY WAGES, OR THE WAGES OF ANY FAMILY MEMBER I EMPLOY, QUALIFY?
Maybe. Wages of owners who have majority ownership, defined as over 50%, do not qualify, nor do the W2 wages of any immediate family members of the owner. In the case an owner has less than 50% ownership, their W2 wages qualify, as do the W2 wages paid to immediate family members.
WHAT IS CONSIDERED QUALIFIED WAGES?
Qualified wages vary based on the year and size of your business.
In the following situations, all wages qualify regardless of whether employees worked or not
In 2020: 100 or fewer full-time employees
In 2021: Fewer than 500 full-time employees
If you had more than 100 full-time employees in 2020 or more than 500 full-time employees in 2021, qualifying wages are wages paid to an employee while they were unable to work due to suspended operations or a substantial decline in revenue.