How Do I Qualify?

As with anything IRS, it is complicated!

Let’s see if you qualify for the Employee Retention Credit making your business eligible for a tax refund of up to $26,000 per W-2 employee.

#1 – Did you employ 5 or more W-2 employees (unrelated – the IRS does not allow spouses and family members to be counted) in 2020 or 2021?

YES – That’s a good start!

#2 – Was your business revenue impacted by a government-mandated slowdown or shutdown in 2020 or 2021 or by a supplier or partner’s shutdown?

YES – That qualifies you for recovery in both 2020 and 2021!

#3 – Did your business experience a 50% or more revenue decrease in any quarter(s) of 2020 compared to the same quarter(s) in 2019?

YES – That qualifies you for recovery in 2020!

#4 – Did your business experience a 20% or more revenue decrease in any quarter(s) of 2021 compared to the same quarter(s) in 2019?

YES – That qualifies you for recovery in 2021!

#5 – When did you start your business? Month Year?

If after February 15, 2020, that’s another way to qualify!

#6 – How many W-2 employees did you employ on average in 2020 and 2021?

To qualify for ERC Priority services, you must have had 5 or more W-2 employees in each year.

Great news! It looks like you may qualify for the Employee Retention Credit.

Frequently Asked Questions

#1 – What is your fee and when do we pay it?

There are no up-front fees or obligation to receive your refund analysis. Once engaged to recover your refunds, our fee is never more than 15%, with no deposits required. You will never come out of pocket to pay our fee. We’re paid only as you receive your refund checks. Our fee includes preparation of your claims by a professional CPA or tax attorney who is experienced in qualifying, substantiating, calculating, and claiming ERC refunds.

#2 – Why haven’t I heard about ERC before?

PPP was heavily marketed by the SBA, while ERC is claimed directly through the US Treasury. Along with our strategic partners, it’s our mission to educate you and obtain for your business the payroll tax refund that it’s entitled to.

#3 – I received PPP loans; am I eligible for ERC?

Even companies that received PPP funding are eligible to claim their ERC. But, unlike PPP funding, there is no obligation to pay anything back.

#4 – Is ERC available for nonprofits and other entities?

YES. ERC recovery is available to for-profits and non-profits alike. Likely industry sectors for ERC recovery include restaurants, food services, vending services, gyms, bars, retailers, charter schools, car dealers, manufacturers, and many others.

#5 – How long do I have to claim my ERC refund?

Time is of the essence as the program has technically expired. The time to claim the refund is running out. Don’t delay!

#6 – My business was profitable or deemed essential, can I still qualify?

Yes! Both essential and non-essential businesses alike can qualify, and a decline in revenue is not required. Many businesses had increased sales but still experienced disruptions or were negatively impacted.

#7 – What is the Employee Retention Credit (ERC)?

ERC is a refundable payroll tax credit. Born out of the same CARES Act as PPP, its aim is to provide economic relief for small and medium businesses who retained employees during the COVID-19 pandemic. Initially, eligible employers could only take either PPP, or ERC. In 2021, as part of the Consolidated Appropriations Act, Congress amended this provision, allowing businesses to apply for both.

#8 – How do I know if my business qualifies?

The IRS expects 70-80% of SMBs are good candidates for taking the ERC. If your business experienced disruptions to commerce, travel, or group meetings due to a government order, it might qualify! This includes supply chain disruptions, price increases, reduced hours, reduction in goods or services offered, were unable to travel, or attend conventions. Talk to one of our Refund Specialists to find out more.

#9 – Do I have to pay this ERC refund money back?

No, unlike PPP, this is not a loan. It’s money that you overpaid in payroll taxes, being refunded to you, and you can use it however you wish—in the business or elsewhere.

#10 – How long will it take to get my ERC refund from the IRS?

As of the Fall of 2022, IRS processing times for receiving your business’ refund check from the US Treasury is on average 6 to 8 months.

#11 – How is the refund calculated?

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.

#12 – I’ve been told that my business does not qualify for ERC relief?

We have recovered over $500M in ERC refunds for refunds for qualified businesses—sometimes for companies that were previously told they did not qualify. It won’t cost you a penny to see how much your company may recover.

#13 – What should I expect after the application is submitted to the IRS?

The IRS is currently working through a backlog of amended Form 941 filings. The longer you wait to apply, the longer the wait time will be before you receive your refunds. Average wait times vary, often taking as long as 6 to 8 months for new applications.

#14 – How do I check the status of my ERC refund?

To check the status of your refund, you can call the IRS directly toll-free at 877-777-4778. You can also always reach out to us at 704-57600477 for any updates throughout your refund process.

15# – Why do I need an ERC refund specialist?

There are over 70,000 pages of tax code; and whether you are a professional or seasoned accountant, it is impossible to be an expert on all of them. At ERC Priority, that is all we do.  It’s like the difference between your family doctor and a cancer specialist. By concentrating on this one program, our strategic partners understand the intricacies and nuances involved in determining your eligibility and accurately calculating your refunds.

#16 – Why can’t I just have my accountant file for me?

Accountants are constrained by their Code of Ethics from charging other than by the hour. And many professionals are reluctant to spend the considerable time understanding the 70,000 pages of tax code that apply. They simply cannot charge their client with the learning time needed to evaluate this ERC refund benefit. That is why we help businesses’ financial advisors and accounting firms, in addition to individual business owners, to qualify for ERC refund recovery and not only that, to MAXIMIZE the amount of their recoveries!

More About ERC