Even if they got a PPP or PPP-2 loan, 98% of our clients are eligible for an ERC check. The Consolidated Appropriations Act of 2021, recent stimulus legislation, eliminated the CARES Act's initial ban on having an ERC and a PPP loan retroactive to March 13, 2020. Your company is eligible for a PPP loan and an ERC refund, but specific computations regarding payroll wages and attribution are necessary. We advise using our professional services to ensure you qualify for the most significant benefit for your business since the ERC procedure can be complicated and comes with over 1,000 pages of instructions.
Yes, there are numerous methods for businesses to entirely or partly halt operations during each calendar quarter. As part of our engagement, we assist you in adequately documenting these partial halts. This covers, among other things, indoor dining capacity limitations, postponed trade shows and group gatherings, and other non-nominal interruptions.
Your company probably qualifies if it had to alter its operations due to governmental directives or if gross revenues fell by 20%. A shift in operations could entail additional cleaning or sanitizing, reducing capacity or hours, installing/using protective equipment, temperature checks, or operational effects relating to important suppliers or clients.
Even if a legal firm was still in business, cases might have been delayed if it could no longer conduct in-person depositions or court proceedings.
A partial suspension of operations can take many forms. Below are some of the common examples:
There are many more ways due to which businesses fully or partially suspend their operations during each calendar quarter. We help you with all the documentation.
Yes! Your business will only meet the employee retention credit eligibility if you have experienced a full or partial suspension of operations due to the pandemic. The operations of your business must be limited by commerce, inability to travel, or restrictions of group meetings. Your business can also be eligible for ERC if it has witnessed a significant decline in gross receipts.
"Below are several examples of qualifying events:
Example 1: A restaurant must close or limit its on-site dining, such as closing down every other table due to COVID-19 restrictions.
Example 2: A business that needs to meet with clients in person and cancel meetings due to COVID-19 restrictions.
Example 3: A business must reduce operating hours because of COVID-19 restrictions and cleaning requirements.
Example 4: The disruptions in the supply chain caused a business to have delayed production timelines.
Example 5: A business with a planned event must cancel that event or restrict the number of people who can attend due to COVID-19 restrictions.
It typically takes our Experts 1-2 weeks to handle your payroll, reconcile any overlap in PPP-covered periods, and create the attribution plans. After that, we will submit your paperwork to the IRS, which will process your tax credit and give you a check within 8 to 12 weeks.
All eligible employers will receive the funds because this is not a lending program - the US Treasury issues tax refunds.
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.
Of course. The difficulty is that, unlike what most CPAs do, the ERC credit is claimed on payroll returns rather than company income tax returns. Due to this, unless they also handle your payroll in-house, most CPAs don't perform this credit. This is another significant factor in the underutilization of this credit. Only some people can process the credit effectively because CPAs generally don't handle it even though they are tax experts. It's interesting to note that many of our clients come from CPAs.
Our extensive payroll expertise at ERC Specialists has enabled us to concentrate specifically on comprehending and utilizing the ERC program. In our experience, only some can successfully maximize this sizable credit for your business due to the complexity (the ERC tax code is over 200 pages long) and time investment required to understand the ERC program.
With our ERC process, all that is needed is a brief phone call with you to review expectations, confirm questionnaire answers, and go over supporting materials. We will handle the remaining steps.