PPP was a forgivable loan. ERC returns the payroll taxes and healthcare expenses that your business has already paid. Once your business receives the ERC funds from the US Treasury, it does not have to pay back the credit.
The program began on March 13th, 2020 and ends on September 30, 2021, for eligible employers.
Yes, if by rare chance the IRS sends a letter requesting documentation to support and documents cannot be provided, a portion of your refund would be required to be sent back. The provision protects you, our client. In this case we would be required to refund our business client the equal portion of our consulting fee back to you.
There are no up-front fees or obligations to determine your ERC eligibility and refund analysis, and you will never pay out-of-pocket. Once your credit is successfully processed with the IRS, our fee is lower than the competition at 15% of the amount of your credit. We only get paid if you get paid and there are no other hidden fees or obligations. Our fee includes the preparation of your claims by a certified professional CPA or Tax Attorney who is experienced in qualifying, substantiating, calculating, and claiming ERC refunds.
Most payroll companies and CPAs are generalists. They focus on the basic general areas such as bookkeeping, filing taxes, preparing daily cash deposits, tracking of accounts payable and receivable, and performing monthly account audits.
Specialist CPAs specialize in areas of specialized focus such as forensic auditing, valuation services, financial planning and such. Similar to a Primary Care doctor vs. a Cardiologist, Endocrinologist, Rheumatologist, etc.
Because of this most pass the liability on to the business or business owner. To insure protection to our clients our partners have Professional liability E&O (Errors & Omissions) insurance as well.
Your also protected as our team works within the framework of IRS Circular 230
Most Payroll and CPAs do not specialize in government incentive or ERTC Tax Codes. For this reason, some of our clients were told they were not eligible for ERTC by their CPA or Payroll Companies.
Incorrect Calculations which may translate into lower ERTC refunds or exaggerated calculations leading to a potential audit.
No, if you are the majority owner (over 50%) of your company then your wages do not qualify. 1099 Employees do not qualify for ERTC, unlike PPP.
The program is a first come first serve basis. Many businesses didn’t receive PPP because the funds ran out. Therefore, all eligible employers will receive the funds when applied.
Your ERTC filing deadlines are:
2024 April 15th to file for 2020 refunds
2025 April 15th to file for 2021 refunds
What happens after I submit my ERTC application?
After you complete your ERTC application, expect to hear from a team member as they guide you through the next steps of the process, including:
Gathering required documentation. (No guesswork)
Identifying all opportunities to maximize the credit. (Expertise counts)
Preparing & filing required tax forms on your behalf. (Make it easy)
Keeping you updated after your ERC application is complete. (Don’t miss a thing)
Yes. Under the Consolidated Appropriations Act, businesses can now qualify for the ERC even if they already received a PPP loan. Note, though, that the ERC will only apply to wages not used for the PPP.
2020: Up to $5,000 per W-2 employee. SMB’s are eligible to receive up to 50% of “qualified wages” (up to $10,000 per employee) paid out from March 13, 2020 through the end of 2020.
2021: Up to $21,000 in credits per W-2 employee. The government loosened things up for 2021 and increased the credit to 70% of “qualified wages”—up to $10,000 per employee, this time per quarter. (Q1-3)
Note: Different rules apply if you qualify for “Recovery Startup” Tax Credit, if your business start date is after Feb 15, 2020 with less than $1 million in gross receipts. Must have paid W-2 employees.
In total, you could potentially receive up to $26,000 in tax credits per W-2 employee payroll tax filings throughout all of 2020 and three quarters of 2021.
NO, you do not have to repay the Employee Retention Tax Credit. This is not a loan. ERC is a reward to business owners for retaining their employees during their qualifying periods.
The ERC credit is not considered income for federal income tax purposes, but a reduction of payroll, so you must reduce any deductible wage expenses by the amount of the credit.
Possible. 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 that owner who owns over 50%. In the case an owner has less than 50% ownership, their W2 wages qualify, as do the W2 wages paid to immediate family members. In some cases, two partners who are unrelated each own 50%, then both of their W2 wages qualify.
Determining the proper amount of a refund is a complex accounting process. Although these are payroll tax credits, what you’ve paid in payroll tax has no bearing on your ERC calculations. The refunds are based on many factors including qualifying quarters, number of employees, hours worked, wages paid and if applicable, PPP loans, group health premiums and participation in other government programs to name a few.
Due to the overwhelming response of businesses applying, the IRS is taking 2-4 months to process ERTC files. They directly mail you the approval letter and the checks.
Yes, Team up with InterconnecT Financial Group, and get paid for every business you refer that has filed an ERC claim through us and completed our 5-step process.