ERC is a CARES Act program designed to help businesses that were able to retain their employees during the COVID-19 pandemic.

• Get up to $26,000 per W2 employee
• It’s a refundable tax credit, not a loan or grant
• Get free analysis by our CPAs with no upfront cost
• Over 80% of businesses qualify for ERC
• Companies with up to 500 W2 employees are eligible
• If you collected PPP, your company could still qualify for ERC

ERC applies to wages from March 12, 2020 and before January 1, 2022 (ERC eligibility previously ended December 31, 2021, but was shortened as part of the latest revision of the program).

You get a check from the IRS (just like a tax refund) and don’t have to pay it back. Once your business receives the ERC funds from the U.S. Treasury, no further action is required on your part.

You may qualify for ERC if you have W2 employees and meet one or more of the following criteria:

• Your company had a 20% or greater revenue reduction from 2019 to 2021 when comparing Q1, Q2, and/or Q3
• Your company had a 50% or greater revenue reduction from 2019 to 2020 when comparing Q2, Q3, and/or Q4
• Your business was fully or partially suspended at any time during these six quarters due to a government order
• You are a Recovery Startup Business (you started a business during the pandemic and have less than $1 million in gross receipts)

With recent legislative changes, 80% of businesses will qualify for the Employee Retention Credit (ERC). You’ll simply need to show you’ve been negatively affected by the pandemic and qualifying is determined mostly by two factors:

1. Your business operation was mandated to shut down completely or partially during any calendar quarter in 2020 or 2021. This applies to brick-and-mortar business shutdowns and restricted travel. 
2. A measurable decline in gross receipts compared to amounts earned in 2019.

Most small businesses, hospitals, and nonprofits will likely qualify for a credit. This includes companies that received a Paycheck Protection Program (PPP) loan. Here are some more important aspects of the program:

• Under the CARES Act, if gross receipts were below 50% when compared to the same quarter in 2019, you’d qualify for an ERC. 
• Beginning in 2021, for businesses impacted by quarantines or closures and a drop in 20% gross receipts, you’d also qualify. 
• New businesses won’t need to compare previous years since they don’t have 2019 figures. Instead, you’ll need to share figures for 2020.

The Employee Retention Credit (ERC) allows businesses to receive a refundable tax credit for retaining employees during the COVID-19 pandemic. Since this is not a loan or lending program, employers do not have to pay it back.

The refunds are issued by the U.S. Treasury, and the IRS writes you a check. All eligible small businesses and mid-size companies will receive their refundable tax credit as long as they file their claim within the deadline.

What Can the Employee Retention Credit Do for You?

There’s no question that adding more money to your bottom line is good for your business. Once you file your ERC claim, you’ll receive a check from the IRS.

To make the most of your refund, we recommend you let our trained experts maximize your claim so you’ll benefit from our nuanced understanding of complex rules and tax codes. Schedule a meeting with our Funding Specialists today.

The best way to claim the credit is to work with our Funding Specialists and CPAs who know how to handle the complexities and your unique situation. Our team has expertise in ERC and can help you through the maze.

To claim an ERC, you’ll need to file an Adjusted Employer’s Quarterly Federal Tax Return using IRS Form 941-X. Eligible businesses can report their qualified wages retroactively for each quarter on their federal employment tax returns. Make sure to report your total qualified wages and health insurance-related costs as well.

You could retain the ERC amount you would have deposited to your employment tax and receive that as a credit. If you’ve already applied for an employment tax credit, you can file an IRS Form 941-X, letting you amend your previously submitted IRS Form 941.

The period to claim a credit falls within the first four quarters of 2020 and 2021. At the time, to claim an ERC refundable tax credit, that period ran between March through January 1, 2021. After legislative changes, the ERC was expanded beyond 2021.

It’s crucial you have the proper documents and can answer questions about your business correctly. How many W2 employees were on your payroll? Do you own or have you invested in other businesses? Did you meet the two-factor qualification criteria?

Applying for ERC can feel like a maze—dare we say, a dangerous one. If a form is filed incorrectly, your claim can be delayed or denied even if you’re eligible. At worst, you’ll have the IRS breathing over your shoulder.

It makes the most sense to trust the process with the professionals. Here at GetMyFunds, there’s no risk in seeing if you qualify and no upfront costs. Our expert Funding Specialists will gather your information and file your claim quickly. If you want to see if you qualify, contact us today.