ERC Explained

The Employee Retention Credit (ERC) is a federal payroll tax credit designed to reward businesses for retaining employees despite economic hardships during the COVID-19 pandemic. The tax credit was initially signed into law in March of 2020 as part of The CARES Act. The credit was later expanded upon with the Consolidated Appropriations Act In December 2020 and The American Rescue Plan Act In June 2021. The ERC program ended when the Infrastructure Investment and Jobs Act was signed into law in November 2021.

Simply put, qualifying business owners can receive a credit of up to $5,000 per employee kept on payroll in 2020, and up to $7,000 per employee (per quarter, excluding Q4) kept in 2021 – for a sum total of up to $26,000 in refundable employment tax credit per employee retained throughout the pandemic.

The Paycheck Protection Program was a forgivable loan, while the ERC program returns payroll taxes that your business has already paid.

It just got sweeter, too: certain businesses can now qualify for BOTH programs, as the Consolidated Appropriations Act (CAA) of 2021 removed the limitation that stipulated only one program could be claimed.

Essentially, once you receive the ERC refund that you qualify for from the US Treasury, those funds are yours to keep. No further action is required.

Great question. With over 70,000 pages of tax code that are constantly being updated, it is impossible for a CPA to master all of them.

At ERCbee, we are payroll experts, and getting the maximum ERC return for our clients is ALL that we do.

Think of the difference between your family doctor and a neurologist … By specializing in this specific program and its protocols, we are able to offer quick, concise, and definitive ERC results  that many CPAs may not yet be familiar with.

The IRS expects 70% – 80% of small and medium-sized businesses to qualify, which could very likely include your company.

If your business experienced disruptions to commerce, travel, or group meetings, you qualify! This includes supply chain disruptions, price increases, staffing shortages, difficulty hiring, reduced hours, reduction in goods or services offered, inability to travel, etc.

The ways to qualify are many, and it is certainly worth exploring whether your business qualifies for any/all of the above circumstances. Talk to one of our ERC refund specialists today to learn more.

You know what they say about putting off until tomorrow what can be done today.

As the program has already technically expired, the window of time to reclaim the funds that are rightfully owed to you is limited and subject to the whims of Congress.

The sooner you claim your credit, the faster it hits your bottom line. Don’t delay!

NO, YOU DO NOT HAVE TO REPAY THE ERC FUNDS YOU QUALIFY FOR.

This is a refund of payroll taxes meant to reward employers who saw their employees through the pandemic – it is NOT a loan. Therefore, it is YOURS to do as you see fit for your business!

Absolutely! Both essential and non-essential businesses can qualify for the ERC program, and a decline in revenue is NOT required. (it is just one of several qualifying circumstances). In fact, many of our clients even saw an increase in sales but still experienced disruptions or were negatively impacted by the pandemic in a way that qualifies them for the program.

With ERCbee, there are ZERO upfront fees and no obligation to receive the refund analysis we create for your business. If you select us to recover your ERC funds, we only take a 15% cut of your total refund with no hidden costs or out-of-pocket payment.

We are paid only after you are and only collect a portion of what we help you recover.

Our fee covers: preparation, analysis, completion, and submission of your claims by an expert CPA or tax attorney who specializes in qualifying, substantiating, calculating, and claiming ERC refunds.

We also stand behind our work by offering audit protection at no additional cost, backed by $2M in liability and E&O insurance.

Our work will be completed within 30 days of receiving your documents, and you’ll receive your refund checks from the U.S. Treasury within 5 – 8 months of submitting your claim, depending on any backlog.

The longer you wait, the longer it will take!

Determining the proper amount of ERC funds you’re entitled to receive is a complex accounting process. The refunds are calculated according to several factors, including: qualifying quarters, number of employees, hours worked, wages paid, and – if applicable – PPP loans, group health premiums and other government programs that your business participated in (to name a few).

You may still qualify for an ERC refund even if you received a PPP and/or PPP2 loan!

The Taxpayer Certainty and Disaster Tax Relief Act of 2020 (December 27, 2020) expanded the original ERC credit rules to include allowing those companies that claimed PPP coverage to still benefit from the ERC program if they qualify.

That said, a special calculation is required, and the same dollar-for-dollar funds cannot be used. This is where we come in to help ensure you receive the maximum possible payout for seeing your employees through the thick of it.

It is expected that all eligible employers will receive the ERC funds they qualify for, but as is the case with all federal funding programs, time is of the essence and qualifications are subject to change – so don’t delay!