Why is This Critically Important Right Now?
Forbes: "The IRS anticipated that approximately 70%-80% of small and medium businesses (as well as tens of thousands of charities) were good candidates for [this tax refund]."
"The reality is — to date the actual numbers of businesses and charities applying is far below that...and [they] are leaving billions of dollars on the table..."
"Hundreds of thousands [of SMBs & nonprofits] across the country are failing to take advantage of this. Billions of dollars are available...but you have to apply."
Free 30 Second Refund Eligibility Quiz
*IMPORTANT: These refunds never have to be forgiven or paid back. (And almost everyone we've spoken with who was told by an advisor that they didn't qualify, actually DOES qualify under the current criteria). That said, there has been A LOT of confusion about how the program actually works since the law changed 5 times in the past year (details below).
FAQs & Common Misconceptions
Although it is technically called a "tax credit," it is most frequently received as a cash payment from the IRS. There is also no dollar limit for how much a business can receive, and no requirements for how you spend it once you've been approved.
This program is not an "income tax credit" and isn't related to your annual business tax returns or your income statement/P&Ls. Because the credit is based on W2 payroll taxes, nonprofits are eligible as well.
While these tax credits in theory should be retroactive for a while, there's no guarantee how long the funding for this will last or if the incentives will be changed once again in the future.
The good news is that it won't cost you anything to find out. We found and vetted ERC accounting specialists who have kept up with all the recent legislative changes, will explain your local/state requirements, and help you determine your eligibility (at no cost) and calculate the correct refund amount your business may be owed.
Eligible Employers for the purposes of the Employee Retention Credit are those that carry on a trade or business during calendar years 2020 & 2021 (including a tax-exempt organization) that either:
1. Fully or partially* suspended operations by a governmental order (AND/OR)
2. Experienced a significant decline in gross receipts during a calendar quarter
*It is absolutely critical to get specialized advice about this. (And possibly even a 2nd opinion). An organization can be considered "partially suspended" if a state/local mandate imposed restrictions by limiting commerce, travel, or meetings (for social, commercial, religious, or other purposes). This can be a "Stay at Home" order, limited indoor/on-site access, limited/canceled in-person meetings and other capacity restrictions, reduced operating hours, delayed production timelines due to supply chain issues, or several other possibilities you should consider and seek personal advice on.
The ERC was not widely used until March 2021, when updated IRS regulations made this type of COVID-19 Relief more accessible. In short: thousands of businesses who once had to "choose" between the Paycheck Protection Program (PPP) and ERC can now qualify for both by amending their Quarterly 941s.
It's critically important to realize the legislation for this program has changed FIVE times in the past year, and still has many pending changes that are currently being voted on (at the time of writing).
Want more information? Just read Notice 2021-20 on the official IRS FAQ website. Refunds are currently being processed daily by tax credit professionals. That said, the IRS backlog is starting to increase as well, so time is of the essence to find out if your business qualifies for this refund ASAP.
As with most things in business, tax credits often require specialized knowledge and experience. Considering the legislation on ERC has already changed several times, it's understandable that many payroll firms, CPAs, and tax advisors may not want to risk their license (or don't have time) to advise on and calculate an audit-ready refund check for a once-in-a-pandemic incentive program like the ERC.
It's important to fully document all processes and procedures, organize records properly, and ideally avoid an IRS audit. The ERC has complex calculating requirements such as Controlled Group criteria, documenting qualification methodology, coordination with PPP loans, allocating healthcare expenses to the appropriate time periods, etc. Hiring specialists can help reduce "audit stress" while also not worrying about leaving a ton of money on the table.
Recent Success Stories
"When the Employee Retention Credit was included in the CARES Act, we knew we wanted help navigating the guidelines, calculations, and paperwork so we could maximize our tax credit and get everything filed correctly. We were very pleased with their team and their services."
Medical Practice Owner5
"They are the experts when it comes to helping get the ERC. They do an excellent job walking you through the steps of what is needed for them to move forward, and make sure you’re approved before any additional steps are taken. They’re knowledgeable and take care of everything for you."
Creative & Development Agency5
"Their firm was very good at knowing the laws and rules of the refund that we received. I didn't know anything about these before talking to a friend who referred me. To date we have received about $80,000 with more coming. I would advise anyone to just reach out to see if it works for you also.”
Home Services Company5
"Unlike the PPP Loan, these credits can be spent on any cash needs and are income. I have, with their help, received funds. Great program, increased income to secure your business in this weird time. Clarity provided is so important. Thanks to their team for all their hard work."