Yes, you may likely still be eligible for ERC, even if you already received PPP! On December 27, 2020, The Taxpayer Certainty and Disaster Tax Relief Act of 2020 was enacted. This Act modified the ERC credit rules. One change included a modification that permits a company to have a PPP loan, and also be able to take advantage of the ERC credit. But, you may not use the same dollar-for-dollar funds. We consider this when we process your ERC credit.
The simple answeris…You don’t! The ERC credit IS NOT A LOAN! The ERC credit is a refundable tax credit that you are eligible to receive if you meet the criteria. If you do not file for the ERC credit and are eligible for it, you will lose out on receiving thousands, or even millions of dollars that are likely owed to you.
The process works in 5 easy steps:
- You submit our pre-qualifying questionnaire.
- You will receive a link to upload the documents we will request.
- Within 2-7 days (and at no charge), we provide you the exact dollar amount of the credit you are owed.
- If you decide to contract with us, you will select a payment option, and your claim will be filed.
- Your refund will be generated by the IRS (there is currently a 20-week minimum backlog for ERC refunds).
The only service ERC Helpdesk provides is the calculation and filing for ERC refunds—which is based on your payroll. Your CPA likely handles your business income tax returns. ERC is likely not their specialty. While your CPA can file for your ERC, it is highly likely that because of their unfamiliarity with The Cares Act and ERC credit, they might miss important findings that can make your ERC refund greater. To put it in simpler terms, we are ERC credit experts; your CPA is a tax specialist. You need an ERC expert to maximize the opportunity for a greater ERC refund. In fact, many CPAs and payroll companies do not want to file ERC and refer their clients to us.
Another resounding, “YES!” There are two qualifiers for 2020: either revenue reduction, or a “full or partial shutdown of your business due to COVID-19.” The IRS describes this as “A government authority required 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.” These are some examples of possible qualifying events:
- A business that ordinarily met with clients in person had to cancel meetings due to COVID-19.
- A restaurant was forced to close and/or limit its on-site dining capacity due to COVID-19 restrictions.
- Supply chain interruptions caused your business to have delayed production timelines.
- COVID-19 restrictions lowered the amount of people who could attend an event with your business.
- Your business had to reduce operating hours due to COVID-19 cleaning requirements and restrictions.
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The government has funded $400 billion for the ERC credit program. When the funds are exhausted, the program will end. If you are an eligible employer, currently, there are funds available, and you will receive the ERC credit. The faster you file, the more likely you are to receive your credit.
Maybe. Wages of owners who have majority ownership, defined as over 50%, do not qualify, nor do the W2 wages of any immediate family members of the owner. In the case an owner has 50% or less ownership, their W2 wages qualify, as do the W2 wages paid to immediate family members.
Sorry, but no. To qualify, you must have W-2 employees other than yourself.
For federal income tax purposes, you will need to provide the credit information to your CPA and report it on your tax return.