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Yes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted on December 27, 2020, modified the ERC credit rules. One of the modifications included allowing a company to have a PPP loan and still take advantage of the ERC credit. However, you can’t use the same dollar-for-dollar funds. We take this into account when processing your ERC credit.
Yes! There are two possible qualifications for 2020: revenue reduction or a “full or partial shutdown of your business due to COVID-19”. Specifically, the IRS describes this as “A government authority requires partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel, or restrictions of group meetings.” Below are several examples of qualifying events:
Example 1: A restaurant must close or limit its on-site dining. Such as having to close down every other table, due to COVID-19 restrictions.
Example 2: A business that needs to meet with clients in person and has to cancel meetings due to COVID-19 restrictions.
Example 3: A business has to reduce their operating hours because of COVID-19 restrictions and cleaning requirements.
Example 4: A business had delayed production timelines caused by supply chain disruptions.
Example 5: A business with a planned event has to cancel that event, or restrict the number of people who can attend due to COVID-19 restrictions.
No. This is not a loan. It’s a refundable tax credit. When we file your ERC claim, we request a refund check for you.
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.
No, if you are the majority owner (over 50%) of your company, your wages do not qualify.
Our service charge is based on a percentage of the credit recovered. We calculate and provide our fee with our free analysis. Since we typically recover 10-20% more than someone less familiar with the program, our fee is very affordable. Like a good CPA, using the right team for this process pays for itself.
This is how the process works: If you wish to move forward, you will sign the engagement agreement, select your desired payment option, and we will gather the data, run the calculations, build your qualification report, and file your claim. Once filed the IRS is taking 3-5 months to issues checks below $200,000 per quarter and 7-10 months to issue checks that are above $200,000 per quarter.
Remember that this program is based on paid payroll taxes, not income taxes. ERC funds not applied towards owed payroll taxes are treated as an ‘over deposit’ of taxes that will be requested as a refund check from the IRS.
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