The ERC is available to any employer—including non-profits, regardless of size—that has experienced either a full or partial shutdown of operations due to a governmental order related to COVID-19, or has experienced a decline in gross receipts.

The employee retention tax credit (ERTC) is available to qualifying employers for the last three quarters of 2020 and the first three quarters of 2021. The employer’s tax return for the second quarter of 2020 was due July 31, 2020. This means that we can amend these returns and request a refund until July 31, 2023. 

The Paycheck Prevention Program was a forgivable loan from the government that you had to apply for and were granted based on your credit history and borrower status. The Employee Retention Credit (ERC) returns the payroll taxes that you have already paid and thus it is yours to claim, regardless of your borrower or credit worthiness. Once you receive the funds you do not have to pay them back or take any more action.

There is still time to apply for the ERTC tax credit in 2022. The credit is no longer available for current claims, but you can claim it retroactively by amending your employment tax returns. The IRS lets you amend returns and claim refunds for up to three years after the filing deadline. That means the deadline for claiming the ERTC is three years after the original due date for the tax return. It’s important to note however that the IRS is likely to end the program when they run out of funds so having us start this process immediately is imperative to securing your refund before it’s too late.

The answer is no, but it does impact your income tax return. The benefits of receiving the credit far outweigh its effect on your taxes.

The initial analysis to determine your eligibility and approximate credit is completely free. If you file for an ERC with us, our fee is a small percentage of the credit once it has been received.

This program is not an “income tax credit” and not related to your annual business tax returns or your profit/loss from the business. Although it is called a tax credit, it is most frequently received as a cash payment (typically in the form of a check) from the IRS. You may also use it to offset future payroll tax payments.

Perhaps the most complicated aspect of the ERC program, separate businesses under common ownership that meet IRS Controlled Group criteria must be evaluated together for eligibility. If the tests are passed, all entities are eligible; if not, none are eligible. The ERC is then calculated and filed for each separately. If you apply through us we can easily walk you through this entire process and make sure you’re filing forms in a way that is most beneficial to you.

Yes, ERC stands for ‘Employee Retention Credit’, also known as the ERTC ‘Employee Retention Tax Credit.’ This program was created by the Coronavirus Aid and Relief Act in 2020 to help businesses keep employees on their payroll. Both Employee Retention Tax Credits (ERTC) and Employee Retention Credits are refundable tax credits.