Employee Retention Tax Credits FAQ's

What is the Employee Retention Credit (ERC) program?

The Employee Retention Credit is a program set up under the Cares Act in response to the Pandemic. The credit is a reward to businesses that stayed open during the pandemic and kept our economy going. The credit repays a portion of the wages paid by employers financially impacted by the Pandemic. The IRS will send your business a check for the amount you qualify to receive. You will not have to pay this back.

Who qualifies for the ERC Program?

All businesses, colleges, universities, hospitals, and 501© organizations that were in some way impacted by the pandemic due to supply chain disruptions, etc.

What type of pandemic-related issues would be considered when determining eligibility for the ERC?

There are many examples of issues that have impacted businesses. That is why we are finding that almost every business will qualify for this credit. Examples include supply chain disruptions, federal, state, or local mandates requiring a business to fully or partially shut down, limitations on the number of people you could have in a room or building, inability to attend normal networking events, disruptions to your sales force's ability to function normally, limited capacity to operate, inability to work with vendors, reduction to the services or goods offered to customers, reduction to hours of operation, shifting of hours of operation to increase facility sanitation, delayed or canceled projects due to Covid related disruption, etc. This is not an all-inclusive list and your business may have had an issue that is unique to your business. Lost opportunity is another way of thinking about how your business may have been impacted.

What if my accountant said I do not qualify for an Employee Retention Credit?

That’s ok, this is where we come in. Currently, around 10-15% of businesses qualify for ERC using the mathematical formula that your accountant is using to determine if you qualify. We use a different method to get businesses qualified if the mathematical method does not work.

Is there more than one way to qualify for the ERC?

Yes! The good news is, that there is another way to qualify using a causation test and we are finding that 85-90% of businesses qualify for the tax credit by utilizing specific facts as listed above documenting how your business was impacted by the Pandemic.

How much will my business receive when submitting a ERC?

Businesses can receive up to $33,000 per employee they kept on payroll during 2020 and 2021. The amount an employee is being paid by a business varies. Thus, we are finding the average award being around $16,000 per employee. For example: If you have 30 employees your award should be approximately $480,000.00.

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