What is the Employee Retention Credit?
The Employee Retention Credit (ERC) is a stimulus recovery program that is designed to subsidize businesses for retaining workers during COVID-19 pandemic while government safety protocols effectively interfered with operations or the operations of your suppliers. Therefore, you may be entitled to a refund on wages paid of up to $5000 per employee for 2020 and $7000 per quarter for 3 quarters in 2021 totalling $26,000 per W-2 employee.
Due to the overwhelming complexity of the tax code, the adoption of this particular credit is vastly going unclaimed even though there is no earmark or repayment necessary. Businesses simply don't know about it. Especially, small businesses are under represented because their CPAs are less likely to be aware and capable of filing the correct paperwork.
Estimate what you might be owed
Average Credits Recovered
*This is a rough estimate. No one can truly estimate your refund without knowing all your relevant details. Results will vary.
Who can qualify for the ERC?
While the general qualifications for the ERC program seem simple, the interpretation of each qualification is very complex. Our significant experience allows us to ensure we maximize any qualifications that may be available to your company.
GROSS RECEIPTS REDUCTION
Gross receipt reduction criteria are different for 2020 and 2021 but are measured against the current quarter as compared to 2019 pre-COVID amounts. Generally, the rule is a 20% reduction compared to 2019. However, the case may be you actually made more money in 2021 than 2019, you may still qualify under the disruption of business operations test.
DISRUPTION IN BUSINESS OPERATIONS
A government authority required a partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel, or restrictions of group meetings. Please note, this is a new provision meant to increase the number of companies to qualify for the credit.
YOU HAD W-2 EMPLOYEES IN 2020
Sole proprietors or those with majority ownership in the business cannot qualify, nor can their family members’ wages. However, all other w-2 employees count as well even part-time employees count towards your total wages paid per quarter per employee. If you have more than 500 employees in 2020 then you cannot qualify.
EVEN IF YOUR BUSINESS DID BETTER OR ONLY SLIGHTLY WORSE DURING THE PANDEMIC YOU COULD QUALIFY
Many businesses qualify for the ERC due to a “change in business operations.” So, even if your revenue didn’t decline by 50% (2020 compared to 2019) then you can still qualify.
Take for instance, did you have the change your business hours, suspend operations, or did your supply chain of vendors experience shutdowns? Those qualify under the new guidance. There are many other scenarios our expert CPAs carefully consider in the qualification process. Our specialists and proprietary software will find the maximum amount you can qualify for when you work with our team. It’s too complex to be reduced down into a few simple rules. Begin to qualify today!
WORK WITH SPECIALISTS
Get 20% More of a Refund With our CPAs*
Our CPAs are a team of experts in this very specific area of taxes in the same way a primary care physician will work with a specialist to give you the best outcome possible.
We’ve already worked with over 6,000 businesses to help them claim more than $3.5 Billion in tax credits. Most of those businesses were also told by their accountants that they didn’t qualify. The challenge is the ERC credit is taken on your payroll returns and not through your business income tax returns, which is what most CPA’s handle. Because of this most CPA’s don’t process this credit, unless they process your payroll in house. This is also a big reason why this credit is so underutilized. Another is just the sheer complexity of the credit. The ERC tax code is over 200 pages and it takes an enormous investment in time to properly understand the nuances and industry specific conditions in order to get the biggest audit-proof return. Therefore, most CPAs would agree to outsource this to a team of experts rather than do themselves.
- Technology-first approach – We have proprietary software to make our results less prone to human error, which results in 30% better refunds than our competition.
- Get a bigger refund – No need to be the guinea pig for your CPA. We average 20% more funding than a CPA not familiar with the program.
- Rely on specialists – Our team strictly focuses on ERC allowing us to be the experts and resulting in more funding for your business.
- Get a faster refund – Our streamlined process allows for faster results, which means faster funding.
- We share a mutual goal for qualifying – We evaluate your claim in every way possible to ensure we maximize your credit.
- Unparalleled support – Although our process is quick and painless when you have questions we have answers with a dedicated team of ERC support specialists.
- Audit protection – If you get audited, we will supply all criteria and assist in responding to the IRS for up to five years.
- Insured – Our service is covered by a $1,000,000 E&O Policy
*Results will vary, but we see an average of 20% more in credits recovered compared to returns our clients who came to us and had their returns done by someone else.
HERE'S PROOF FROM THE IRS
The Rules Have Changed. Act Fast!
click the image below to visit the relevant page on IRS.gov
How does it work?
After you fill out the "begin to qualify" form, then we will contact you to schedule a screening discussion. This is no-cost, no-obiligation conversation just to see if you are eligible and to ask us all the questions you want.
You agree to work with our team and provide the needed documents
We validate eligibility and
find areas for maximum refund
We calculate the payroll wages
qualifying for the credit
We prepare the documents
and file them to the IRS
We provide audit-ready documentation
You get a check or multiple checks
from the US Treasury
Respectfully, get a second opinion. Even if it’s not with us. Our job is just to inform you about this benefit the IRS has yet to do a good job of announcing on its own. The CPAs and Tax Attorneys we work with are extremely knowledgeable about this program and they see about $21,000 being recovered per employee with a 97% success rate. For instance, the idea of not seeking a second opinion has a real dollar cost of risk associated with it. If your company kept about 10 people hired between 2019 and 2021 then you risked about $210,000 on that decision of believing your CPA who has a 50% chance of being right or wrong statistically speaking. Would you toss a coin in the air and bet $210,000 that it’s heads? What if you had 100 employees? You’re going to gamble $2.1 Million on a coin toss? If you had 200 employees, are you going to risk $4.2 Million on a coin toss? We offer a risk free way to find out if you are leaving this money behind or you really can’t take advantage of it. Just start the process by filling out the form on “Begin to qualify”.
The IRS has delivered checks within 10 days, but can take 8 months in some cases. If you last received a credit in 2021 for 2020’s tax period, then you need to also apply for the 3 quarters in 2021 that the IRS says are also eligible for the credit. The 2021 credit is actually much more financially rewarding where it’s paying out 70% of a maximum of $10,000 in earnings per quarter per employee. That’s $21,000 vs $5,000 you already received.
They amended the rules 5 times since March 2021, and most recently, they amended them in December 2021. Technically, back then you could not take both the PPP loan and qualify for ERC. However, they found that only 5% of the businesses that would qualify for this credit are actually claiming the credit. That’s why we exist. There are nearly 23 million businesses that should apply for this credit.
That’s an understandable conclusion. Just look at the IRS website and just search for Employee Retention Credit. The Biden Administration changed the rules on the premise that companies should be rewarded for keeping on employees during the pandemic. They eased the requirements to qualify so it’s not just based on revenue losses but also based on a supply chain disruption. There are certainly negative aspects of this. For one, it takes months to get a check back from the IRS. It’s very complicated to get and is time-consuming to provide the audit proof documentation needed to file. It will be taxed as ordinary income. The legislation allotting this money only set aside $400 Billion and a $18 Billion has been used up already. So, once this catches fire, they may amend the rules again to prevent you from qualifying because there’s no more funding. There is a maximum number of years you can amend your payroll taxes. Time is running out. So, begin to qualify today!