What are Employee Retention Credits (ERC’s)?

ERC’s are refundable tax credits designed to reward business owners for retaining employees throughout the COVID-19 pandemic. It’s now 2022, but Employers can still apply for the credit retroactively.

The Employee Retention Credit is available to small and mid-sized businesses. It was signed into law on March 27, 2020, as part of the CARES Act—and significantly expanded in 2021. Businesses can claim up to $5,000 in refundable tax credit for each employee in 2020 and up to $7,000 per quarter for each of the first three quarters in 2021.

How is eligibility determined?

Eligibility is determined by quarter. For most businesses, the tax credit is available from Q2 2020 through Q3 2021 However, businesses that started after February 15, 2020 may qualify for credits in Q3 and Q4 2021. Most employers that qualify at all usually qualify for at least two quarters.

Your business is most likely to qualify for ERC due to one or more of the reasons below:

  1. Your business revenues had a decline of 50% or more in Q2 or Q3 2020 compared to the same quarter in 2019
  2. Your business revenues had a decline of 20% or more decline in Q4 2020, and/or Q1, Q2, and/or Q3 2021 compared to the same quarter in 2019.
  3. Your business operations were impacted or changed during the calendar quarter due to a COVID-19 related government order.
  4. You are a new business formed after February 15th, 2020. As a “Recovery Startup Business” you may be eligible for an ERC of up to $100,000.
  5. Your business operations experienced a significant supply chain interruption.

Find out if your eligible

Call today: 385-206-3552

ERC is painless COVD relief

  1. No Economic Necessity Required
  2. No Forgiveness Process Required!
  3. Whether your business received zero, one, or two “Payroll Protection Program” loans you can still qualify!
  4. Businesses who received PPP loans in both 2020 and 2021 are even more likely to qualify.
  5. Your refund could be up to $5,000 per employee in 2020 and up to $21,000 per employee in 2021.

How do I calculated my refund and claim the credits?

You may be thinking, “The Payroll Protection Process took a few years off my life! I don’t want to go through that again.” What does the process for claiming these credits look like?

At no cost—We will determine if you qualify. Note: Usually we can determine this by simply reviewing a profit and loss by quarter from 1/1/2019 through 9/30/2021.If you do qualify—we will obtain sufficient payroll information from you to estimate the amount of ERC credits available to you. We will then prepare a reasonable, no-obligation fee estimate to help you claim the credits.Lastly—if we are engaged to do so, we will prepare the amended 941 returns and the associated support to claim all the credits available to you. 

This includes:Preparing and documenting in detail the calculations for ERCPreparing your PPP loan forgiveness application and supporting documentation (if not already completed)Checking for conflicts and excluding ineligible wages to family and wages used for Payroll Protection Program loan forgivenessPreparing the amended 941 returns (941x) and mailing the 941x returns via certified mailPreparing (and providing to you) a well-documented set of workpapers supporting the ERC amounts / filings. This will be needed in the event you are audited.Staying in contact with you until all credits have been received.Note: We also offer deferred payment options wherein fees for services are not due until AFTER you receive the ERC refund from the IRS.

  • At no cost—We will determine if you qualify. Note: Usually we can determine this by simply reviewing a profit and loss by quarter from 1/1/2019 through 9/30/2021.
  • If you do qualify—we will obtain sufficient payroll information from you to estimate the amount of ERC credits available to you. We will then prepare a reasonable, no-obligation fee estimate to help you claim the credits.
  • Lastly—if we are engaged to do so, we will prepare the amended 941 returns and the associated support to claim all the credits available to you.

This includes:

  • Preparing and documenting in detail the calculations for ERC
  • Preparing your PPP loan forgiveness application and supporting documentation (if not already completed)
  • Checking for conflicts and excluding ineligible wages to family and wages used for Payroll Protection Program loan forgiveness
  • Preparing the amended 941 returns (941x) and mailing the 941x returns via certified mail
  • Preparing (and providing to you) a well-documented set of workpapers supporting the ERC amounts / filings. This will be needed in the event you are audited.
  • Staying in contact with you until all credits have been received.
  • Note: We also offer deferred payment options wherein fees for services are not due until AFTER you receive the ERC refund from the IRS.
Your financial advocate

Schedule an ERC Consultation

Call now to start the ERC process today: 385-276-0506