ERC - Did You Know? 🤔
Did You Know ... 🤔
Most small businesses 👉With W-2 Employees 👈 in the United States have yet to claim their Employee Retention Credit (ERC), which provides COVID-19 relief funding to businesses.
The majority of them have claimed Paycheck Protection Program (PPP) funding, but are unaware that they can also claim ERC funding. These programs are part of the American Rescue Plan Act of 2021, which provides relief to businesses that have been financially impacted by the COVID-19 pandemic.
Originally, companies had to choose between the PPP or ERC programs. Most companies opted for the PPP program because of its simplicity of application and avoided the more complex ERC application process.
In 2021, the American Rescue Plan Act of 2021 changed. It allowed companies that had already applied for and received PPP funding to also claim ERC credits. They could apply retroactively if they were qualified and if there were lower qualification requirements.
In summary, businesses that have previously applied for PPP loans may still have sufficient payroll to also receive ERC funding.
The ERC is not limited by the number of employees in a company. To qualify for the credit, a business must have had its operations adversely affected by federal, state, local, or regulatory orders due to COVID-19 or experienced a reduction in revenue due to the pandemic.
There are many different ways to consider a business to have been partially closed. Two of the most common examples are situations where hours of operation are reduced or supplies are delayed due to government orders.
Others include capacity restrictions, supply chain disruptions, travel restrictions, trade disruptions, group gathering limitations, full or partial shutdown, customer or worksite shutdown, orders working remotely or customer or supplier restrictions in at least one financial quarter, or they must have had a drop in revenue due to the pandemic.
Most businesses (and charities) are unaware that the ERC program is not just for struggling businesses. It aims to encourage businesses and charities to retain existing employees and hire new ones to help with the economic costs caused by COVID-19. A wide range of businesses are excellent candidates for the ERC, including restaurants, manufacturing, construction, the food industry, healthcare, charities and tax exemptions such as churches, museums, food kitchens, schools and many more.
These funds do not have to be repaid and can provide significant funding to the business with no requirement as to how the business spends the money.
👉 Most accounting firms are unwilling to handle ERC claims on behalf of their clients due to the complexity and time involved, as they are already too busy with their existing workloads.
ERC experts specialize exclusively in preparing, maximizing and filing ERC claims while simplifying the process for employers.
👉 Deadlines To Apply For The ERC:
For all quarters in 2020, the deadline to apply for the ERC is April 15, 2024, and for all quarters in 2021, the deadline is April 15, 2025.
The ERC can only be filed using an IRS Form 941-X, “Adjusted Employer’s Quarterly Federal Tax Return Or Claim For Refund.”
A separate 941-X will be filed for each calendar quarter for which ERC is being claimed.
Once a company uploads their information to a secure portal, a dedicated CPA team will assess the company’s eligibility and the amount they can claim. The company receives an initial ERC estimate free of charge. Once the business is ready to proceed, the team will prepare and file documents with the IRS.
The IRS Will Either APPROVE, AMEND Or REJECT Full Applications!
Companies are charged a small percentage of the claim, which can be deducted from the proceeds.
The IRS will process the credit and send a check to the business. The whole process is safe and secure, with all sensitive information protected.
Time IS Money! 💸
FACT 👉 If You Do NOT Check ... You CAN'T Qualify! 🥴 However - IF YOU CHECK ... You MAY Qualify! 😉
Interested In Helping Businesses Recover ERC Rebates? We NEED Business Partners! Join Our Team - Just As Many CPAs Are ... PARTNER WITH US!