What Is The Employee Retention Credit (ERC)?

The Employee Retention Credit

COVID-19 has been a challenge for all of us. As the world shut down the economy came to a halt, leaving the future of many businesses in a precarious position. As we begin to find normalcy again, businesses now have to focus on recovering and fortunately, several government programs are easing this process.

One such program is the Employee Retention Credit or ERC, which is a generous stimulus program designed to bolster those businesses that were able to retain their employees during this challenging time. Due to the extremely complex tax code and qualifications, it is severely underutilized. Details of the program include:

  • UP TO $26,000 PER EMPLOYEE
  • AVAILABLE FOR 2020 & Q1 – Q3 2021
  • QUALIFY WITH DECREASED REVENUE OR COVID EVENT
  • NO LIMIT ON FUNDING (ERC IS NOT A LOAN)
  • ERC IS A REFUNDABLE TAX CREDIT

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Maximum Funding

My partners will evaluate your claim in every way possible to ensure you maximize your credit returned.

Audit Support

If you get audited, my team will supply all criteria and assist in responding to the IRS.

Proven Success

No need to be the guinea pig for your CPA. my team averages 10-20% more funding than a CPA not familiar with the program.

apply and qualify today.

My friends at ERC Specialists are a specialty payroll company Exclusively dedicated to understanding and maximizing the CARES Act Employee Retention Credit (ERC) for U.S. businesses affected negatively by COVID-19.

ERC Funding can be complicated. We can help.

Find out if you qualify

We specialize in Maximizing ERC Funding for Small Businesses.

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Got questions?

Frequently Asked Questions

No. This is not a loan. It’s a refundable tax credit. When we file your ERC claim we request a refund check for you.

 

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.

 
 

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.

At ERC Specialists we 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.

 

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.

 
 

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.