FAQ'S

Why have I not heard about this before?  When I got PPP my bank contacted me or my accountant told me I didn't qualify for this before? So why am I just hearing about this now?  

  • Bank's did PPP loans and wanted to process those for you.  ERC is a Payroll Tax Credit/Refund - NOT A LOAN - Processed by the IRS. 

  • Guidelines for this program have changed drastically since it's inception in 2020 with the CARES Act.  In 2021 the American Rescue Plan Act changed requirements so small Businesses could do both PPP program AND ERC and eligibility requirements have continued to change since then.  Most types of Businesses will now qualify for ERC where they didn't a year or 2 ago.  

  • Many business entities, Including Banks and sometimes even Accountants/CPA's, don't k​now about it as it isn't part of their specific Business models or services as it's a payroll tax Credit, not a traditional yearly income tax filing.  

  • We believe you will see more and more on this in the coming year, and the IRS is already backlogged with thousands of businesses applying for it everyday, so this is your opportunity to get started on it now.

 

Can I take this to my Accountant and check with them about it?

  • ABSOLUTELY!  Interestingly enough, we obtain a lot of our business from Accountants/CPA's.  We work with Accounting firms and CPA's all the time helping process these claims.  It's often necessary in fact.  

  • If your accountant or CPA hasn't told you about the program, they may not be the most experienced in filing these claims as it's probably not the focus of their services or area of expertise.  We are the EXPERTS at maximizing and processing ERC claims to get your business approved and your Refund Fast!  

  • We often hear from clients that their Accountant/CPA told them they don't qualify for this, only to find out that they did! Considering this is usually a substantial tax refund for your business, we recommend completing our Qualifying Questionnaire to double check for yourself.    

 
What period does the program cover?
  • The program applies to the last 3 quarters of 2020 and first 3 quarters of 2021, for eligible employers.  You can apply for refunds for 2020 and 2021 after December 31st of this year.

  • We have clients who have received refunds from $5,000 to $6 million.

  • If you had W2 employees during those years and Covid affected your business in any way.  You should immediately find out if you qualify.

 
Do we still qualify if we already took the PPP?
  • Yes! Under the Consolidated Appropriations Act, businesses can now qualify for the ERC even if they already received a PPP loan. Note, though, that the ERC will only apply to wages not used for the PPP. 

  • If you didn't get PPP you should be filing for ERC immediately as claims tend to be larger.  

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

You very well might!  Your business qualifies for the ERC, if it falls under one of the following:

  • A government authority required partial or full shutdown of your business during 2020 or 2021. This includes a wide range of effects including your operations being limited by commerce, inability to travel or restrictions of group meetings.  Essentially any impact on your business from the Covid-19 Pandemic could qualify your business.  

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

 
Do we still qualify if we remained open during the pandemic?

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

  • Experienced a decline in gross receipts by 20%, or

  • Had to change business operations due to government orders

Many items are considered as changes in business operations, including shifts in job roles and the purchase of extra protective equipment. The ERC, in this case, also applies only for Q3 and Q4 of 2021. Businesses can qualify, regardless of the number of full-time employees.

Still Unsure?  

The best way to find out if you qualify is to complete the online questionnaire.  It takes 5-10 minutes to find out if you qualify.  You are also welcome to contact myself with any questions.    

You will be taken directly to ERC Specialist site for businesses.  Click "Begin Qualifying" to find out if your business qualifies.  Feel free to contact me with any questions throughout the process.   

Qualifications for ERC
Companies that Qualify for ERC
ERC Specialist Tax Expertise