What is The ERC Program?

ERC is a stimulus program designed to help those businesses that were able to retain their employees during the Covid-19 pandemic. Established by the CARES Act, it is a refundable tax credit – a grant, not a loan – that you can claim for your business.?

The ERC is available to both small and mid-sized businesses. It is based on qualified wages and healthcare paid to employees.

1. Up to $26,000 per employee?
2. Available for 2020 and the first 3 quarters of 2021
3. Qualify with decreased revenue or COVID event?
4. No limit on funding?
5. ERC is a refundable tax credit?

How do you know if your business is eligible?

1. ?Is your business based in the United States and was founded prior to February 2022?
2. Was your business impacted by covid?
3. Did your business have 4 or more full-time W-2 employees in 2020 and 2021?

-OR-

4. Was your business deemed non-essential and legally restricted from operating at full capacity??

5. If you have answered yes to any of these questions, you likely qualify for the Employee Retention Credit, a newly available tax credit directly from the IRS.

We can help make sense of it all. We have dedicated experts that will guide you and outline the steps you need to take so you can maximize the claim for your business.?

What period does the program cover?

The program began on March 13th, 2020 and ends on September 30, 2021, for eligible employers.

You can apply for refunds for 2020 and 2021 after December 31st of this year, into 2022 and 2023. And potentially beyond then too.

Can I qualify if I’m a 1099 contractor?

Unfortunately, no. This program is only for companies who paid W2 wages to non-owners

What if I have bad credit? Is there a credit check involved?

Remember– it’s a tax credit. There are no credit checks, collateral, or personal guarantees required. It’s NOT a loan

Do we still qualify if we already took the PPP?

Yes., businesses can now qualify for the ERC even if they already received a PPP loan. However, the tax credit will only apply to wages not used for PPP

Can you still qualify if we did not incur a 20% decline in gross receipts?

You qualify if:

A.?????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 meetings.

?B. Gross receipt reduction criteria is different for 2020 and 2021 but is measured against the current quarter as compared to 2019 pre-COVID amounts.

We were opened during the Pandemic. Do we still qualify?

Yes. To qualify, your business must meet either one of the following criteria:

1. Experienced a decline in gross receipts by 20%, or

2. Had to change business operations due to government orders

3. Many items are considered as changes in business operations, including shifts in job roles and the purchase of extra protective equipment.

Any questions please feel free to email us [email protected]?or call us. Get pre-approved below and sign up for our informative newsletters which include dates for our future webinars and our panel of SME guess speakers.