The ERC is a refund for wages paid to W2 Employees during eligible time periods. This refund comes in the form of a check mailed directly to your company.
Companies can claim up to $5,000 per W2 employee
Companies can claim up to $21,000 per W2 Employee
Recovery Startup Business
Companies opened after 2/11/20 can claim up to $100,000 in credit
Reduction in Revenue
May qualify for any quarter in 2020, if gross receipts were less than 50% of gross receipts for the same quarter in 2019
May qualify for any quarter in 2021, if gross receipts were less than 20% of gross receipts for the same quarter in 2019
Government Mandated Closure 2020 - 2021
May qualify for any time period where a business or their suppliers was subject to a government mandated closure that affected their business
Restaurant – Indoor Dining was limited to 50% Occupancy
Construction Company – Non essential projects were not permitted
Medical Practices – Mandated timed cleaning of offices in between patients or postponement of elective surgeries.
Yes! A business can receive these funds and still file for ERC. Only the wages used for PPP loan forgiveness may not be used to claim for ERC.
These loans are not counted when reviewing gross receipts tocalculate a reduction in revenue.
My businesses did not have a significant decrease in revenue butI had government mandates that affected a nominal portion ofmy normal business operations, can I still qualify?
Yes! A business can still qualify based on a closure mandate evenwithout qualifying for a reduction in revenue.
Why haven’t my payroll companies or accountants reachedout to help me obtain such significant funds until now?
The ERC is a complicated credit that involves work beyond thescope of just an accountant's or payroll company's software. Eligibilityfor ERC often requires intensive legal analysis. Thus, accountantsneed to work in tandem with lawyers to ensure a proper case study isdeveloped. In addition, the constantly evolving guidance andlandscape of ERC requires that lawyers and accountants stay up todate on all guidance and changes in order to maximize ERC for eachclient. Thus, a firm with accountants and lawyers who are specialist inERC, is best suited to maximize the credit for each company.