Frequently asked questions
What are ERC’s?
The ERC is a fully refundable tax credit for employers equal to 50% of qualified wages that Eligible Employers pay their employees during 2020 and 70% in 2021.
How do I qualify?
Eligible Employers are employers that carry on a trade or business during calendar years 2020 or 2021, including tax-exempt organizations, that either:
Fully or partially suspend operation during any calendar quarter due to orders from a governmental authority limiting commerce, travel, or group meetings due to COVID-19; or
Experience a significant decline in gross receipts during a calendar quarter.
What is a significant decline in gross receipts?
2020: 50% decline 2020 calendar quarter vs. 2019
2021: 20% decline 2021 calendar quarter vs. 2019 or sequential calendar quarter
How much of a refund can I get?
2020: 50% of qualified wages up to $5,000 per employee
2021: 70% of qualified wages up to $21,000 per employee
My company received a PPP loan, do we still qualify?
YES! Receipt of and forgiveness of a PPP loan does not disqualify you from receiving an ERTC. The caveat is that you cannot claim the same payroll for both. In most scenarios, even companies that maxed out their PPP loan and forgiveness still have excess ERTC’s available to them!
How do I claim the ERTC?
ERTC’s are claimed by amending quarterly payroll Form 941 based on supporting calculations for the credit. The credit is initially an offset of employer- paid social security tax with the excess credit being refundable in cash.
I'm busy and this seems complex. I'm not sure it's worth the effort.
Let us do the heavy lifting for you. Our experts require minimal client time and simply need access to certain company records to perform a though analysis and provide you an audit-ready compliance file. More than that, we actually integrate with your payroll provider to file for the ERTC’s on your behalf!