1. What is the Employee Retention Credit (ERC)?

The ERC is a tax credit against certain payroll taxes, including an employer’s share of social security taxes, for wages paid in 2020 and 2021. The tax credit is 50% of the wages paid, up to $10,000 per employee, capped at $5,000 per employee for March 12, 2020 to December 31, 2020. For 2021, the ERC is available for the first three quarters, up to $7,000 per employee per quarter.

2. Who is eligible for the ERC?

To be eligible, a company must experience either a partial or full government shutdown (the ERC is only available for wages paid during the shutdown), or a decline in revenue. For 2020, a 50% decline in revenue in a quarter relative to the comparative quarter in 2019 is required. For 2021, a 20% decline in revenue in a quarter relative to the comparative quarter in 2019 is required, or eligibility can be established based on the previous quarter’s 20% decline in revenue relative to its comparative quarter in the previous year.

3. How much can an employer receive under the ERC?

For 2020, an employer can receive a credit equal to 50% of the first $10,000 of qualified wages paid per employee in the aggregate for all qualifying quarters, with the maximum ERC for all of 2020 being $5,000 per employee. For 2021, an employer can receive 70% of the first $10,000 of qualified wages paid per employee in each qualifying quarter, with the maximum ERC for each such quarter being $7,000 per employee and the maximum ERC for 2021 being $21,000 per employee.

4. What are qualified wages?

All wages paid to and qualified health plan expenses paid for all employees for the applicable quarter are considered qualified wages. For large employers (over 100 full-time employees in 2020 or over 500 full-time employees in 2021), only wages paid to and qualified health plan expenses paid for employees for a period or periods that the employees did not perform services for the employer are considered qualified wages.

5. Can an employer who received PPP qualify for the ERC?

Yes, an employer who received PPP may qualify for the ERC, but the same wages cannot be used to qualify for forgiveness of a PPP loan and as qualified wages for the ERC.

6. How can an employer claim the ERC?

Gredger has created a 30 seconds form to get pre-approved. After completing the form, eligible businesses will be matched with a preferred business service provider who will expedite the filing of the ERC application.

ICARUS FUNDING LLC

For the purpose of processing and filing your information which include information you send to us via our web forms, email, phone or other communication mediums, we send your provided information to Icarus Funding LLC and use the response from their systems to update your on your application status. Contact the Icarus Funding LLC for me information here: Icarus Funding LLC.

7. Do I have to pay back the ERC credit?

No, the ERC credit is not a loan. It is a refundable tax credit that you can claim on your payroll returns, and we will request a refund check for you.

8. How much do you charge for your service?

Our fee is based on a percentage of the credit recovered, and we calculate it for you as part of our free analysis. Our fee is affordable and worth the investment, as we can recover more credit than someone less familiar with the program.

9. Can’t I just have my CPA file for me?

Yes, your CPA can file for you, but most CPA’s don’t process the ERC credit since it is taken on your payroll returns, which they may not handle. At ERC Specialists, we have decades of payroll experience and a deep understanding of the ERC program..

10. Can I still qualify for ERC if I already took PPP?

Yes, you can still take advantage of the ERC credit even if you have already received PPP funds. We will take this into account when processing your ERC claim.

11. My revenue went up in 2020, can I still qualify for ERC?

Yes, you can still qualify for ERC if you had to partially or fully shut down your business due to COVID-19 restrictions, even if your revenue went up. We have several examples of qualifying events.

12. Can I refer my clients to ERC Specialists?

Yes, we offer a referral/affiliate program. Contact us to learn more..

12. Will the ERC funds run out?

No, all eligible employers will receive the funds as tax refunds issued by the US Treasury.

12. How will I make payment for your service?

We offer upfront payment at a discount or the full fee can be deducted from your refund once received.

12. Can I get more ERC credit than I paid in taxes?

Yes, any unused credit not applied to payroll taxes will be refunded to you by the IRS.

12. Do my wages or those of any family member I employ qualify for ERC?

It depends on the percentage of ownership. If you have over 50% ownership or your immediate family members are employed, their wages do not qualify.

12. Can I qualify for ERC if I’m self-employed?

No, if you are the majority owner (over 50%) of your company, your wages do not qualify for ERC.

12. How long does it take to get my ERC credit?

The process usually takes 2-3 weeks from start to finish, and refunds are released based on IRS backlog. Currently, the IRS has stipulated a 20 week minimum turnaround on the ERC refunds. Thankfully, our preferred partners offer a Funding options where you can receive funds in less than 10 days. To learn more, complete our pre-approval form today!

12. Is the ERC credit taxable?

No, the ERC credit is not considered income for federal income tax purposes, but you must reduce any deductible wage expenses by the amount of the credit. Please provide the credit information to your CPA for tax purposes..