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INTRODUCING ERC FILING GROUP

Save Your Business in These Challenging Times Get Your ERC Refund Today

Schedule a free consultation with our team of experts to learn more.

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What is the Employee Retention Credit and how does it work?

The Employee Retention Credit (ERC) is a tax credit that businesses can claim for wages paid to employees who were kept on payroll during the COVID-19 pandemic.

  • ERC offers a tax credit up to $26,000 per employee for wages paid from March 13, 2020, to December 31, 2021.

  • Assists businesses in covering employee payroll during tough economic conditions.

  • Unlike other relief programs like PPP, ERC covers more than just payroll.

  • Funds can be used for rent, utilities, and various operational expenses.

  • Businesses can get a tax refund even without tax liabilities, boosting cash flow.

Why ERC Filing Group?

Because we know how to get your ERC refund from the IRS the RIGHT way!

Complimentary Eligibility Assessment

We offer a complimentary eligibility assessment without any obligation, eliminating the need for clients to self-certify.

Strict Adherence to IRS Guidelines

We are committed to authenticity and do not issue misleading “pre-approvals” based on limited information.

Commitment to Authentic Claim Scrutiny

Our eligibility and calculations adhere to IRS Guidelines, avoiding unreliable third-party sources.

100% Refundable Fee Assurance

Should our oversight result in any repayments to the IRS, our fees are potentially 100% refundable.

Benefits of the Employee Retention Credit

The pandemic led to significant staff shortages in many businesses due to layoffs and changing work dynamics. The credit provides additional cash as a tax benefit, facilitating the rehiring of employees.

Originally, Paycheck Protection Program (PPP) beneficiaries couldn’t get the Employee Retention Credit. The Consolidated Appropriations Act of 2021 changed this, allowing PPP recipients to claim the ERC, excluding wages covered by forgiven PPP loans. Remaining wages might qualify for the ERC.

Who Qualifies for the ERC Tax Credit?

Entities like small businesses, startups, nonprofits, corporations, LLCs, and organizations with under 500 employees could qualify for the ERC tax credit. This encompasses a vast majority of US-based businesses spanning numerous industries.

However, companies that transitioned to remote work without altering their operations might be exceptions. Nevertheless, if such companies faced a significant drop in income, they could still be eligible for the ERC.

Who you work with MATTERS!

Do you have confidence in the source?

The IRS has provided extensive information on the ERTC. We’ve sifted through it to highlight the most relevant details for you. While we are experts in this domain, we aim for you to feel just as confident in your understanding as we do.

Is it too good to be true?

Exercise caution if promised $26,000 per employee. Factors like PPP loans, family members, non-eligible periods, among others, can reduce ERC claims.

Who is actually filing the paperwork?

Our expert team is committed to securing the maximum ERC you’re eligible for, without exposing you to undue risk. We conduct thorough due diligence to protect your business.

You can count on ERC Filing Group!

Accuracy

The quality of being correct, true, and exact

Transparency

Frank, open, and candid

Integrity

What we do behind the scenes

Efficiency

We are competent at our job

Honesty

No deceit; no fraud

Tax Savings Examples

Hundreds of employers from a variety of industries have benefited from ERC Filing Group’s ERC services.

Client Example
Dental Laboratory
Annual Revenue: $7 Million
Q1, Q2, Q3 – 2021 ERC Qualifications
  • Drop in revenue
  • Impacted by social distancing
  • Unable to fully staff lab due to spatial restrictions
Total ERC Refund: $230,000
Client Example
Manufacturing
Annual Revenue: $23 Million
Q1 – 2021 ERC Qualifications
  • Supply chain issues
  • Reduction in capacity due to social distancing
  • Partial shutdown of operations
Total ERC Refund: $982,000
Client Example
Construction
Annual Revenue: $92.7 Million
Q2, Q3 – 2021 ERC Qualifications
  • ERC Qualifications Experienced severe supply chain issues
  • Faced revenue loss as large clients canceled their accounts
Total ERC Refund: $2.5 Million

How Will the Process Work?

  1. Data gathering: All we need is 4 pieces of information (# of employees for 2020, # of employees for 2021, paid wages for 2020 and paid wages for 2021) from you so we can calculate your refund and let you know how much money you’re due back.
  2. Credit calculation: We’ll leverage our expertise to determine the precise credit amount you can claim from the IRS.
  3. Amending returns: We’ll in prepare and file the amended 941-X payroll returns for you.
  4. Get paid: The IRS will process your credit and mail you a check.

Top Mistakes to Avoid

  1. Not properly documenting your qualified wages. To claim the ERC, you must be able to document the qualified wages that you paid to your employees.
  2. Claiming wages that are not qualified. Not all wages are qualified for the ERC. For example, wages paid to employees who are not full-time or who are not working in the United States are not qualified.
  3. Not filing your Form 941-X by the due date. The Form 941-X is the form that you use to claim the ERC. The due date for filing the Form 941-X depends on the quarter in which you paid the qualified wages.
  4. Not working with a professional. The ERC is a complex tax credit, and it is important to work with a professional like ERC Filing Group to ensure that you are claiming it correctly.

Helpful Employee Retention Credit FAQs

Is my business eligible for ERC?2023-08-27T15:54:01-04:00

There are many factors involved such as revenue reduction, business shutdown, eligible employees, etc. Our team can help you evaluate your eligibility by collecting some information from you via our ERC Questionnaire.

Do I have to repay the ERC credit?2023-08-27T15:54:16-04:00

No, this is a refundable tax credit and not a loan. We request a refund check for you when we file your ERC claim.

As an owner do my wages, or the wages of any family member I employ qualify?2023-08-27T15:54:32-04:00

Maybe. 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 the owner. In the case where an owner has less than 50% ownership, their W2 wages qualify, as do the W2 wages of immediate family members.

What are the main differences between PPP and ERC?2023-08-27T15:54:51-04:00

While both PPP and ERC are part of the CARES Act, there are some notable differences: the PPP was structured as a forgivable loan through your local bank via the SBA; the ERC is a payroll tax credit through the IRS – it is not a forgivable loan; it is cash for you to do whatever you choose. The PPP had a specific funding amount and PPP funds ran out; ERC funds don’t run out, you just have to claim your credit prior to the end of the 3 year lookback period.

Why am I just hearing about this now?2023-08-27T15:55:07-04:00

ERC “Version 1” went live in March of 2020 but was mostly ignored due to the focus on PPP. However in December 2020, the Government updated the law with the release of ERC “Version 2” through the Consolidated Appropriations Act. Under Version 2, employers were both retroactively and prospectively allowed to take both ERC and PPP (Round 1 and 2). Version 2 also extended the credit into Q1, Q2 and Q3 of 2021 and increased the field of eligible employers by allowing companies with up to 500 employees to take the credit, up from 100 for 2020. In short, it was a huge expansion of eligibility which opened up a significant opportunity for hundreds of thousands of businesses in the US.

How do I qualify?2023-08-27T15:55:41-04:00

A business is eligible if they meet one of two tests. Only one test is required and it’s possible to qualify under one test for one period, and another test for a different period.
The first test is a quantitative test that was developed as an objective measure of whether COVID-19 impacted a company’s ability to generate revenues comparable to pre-COVID levels. This test is referred to as the “Substantial Decline in Gross Receipts” test, or SDGR. This test looks to compare quarterly periods in 2020 and 2021 to the same quarterly period in 2019. The relevant percentage threshold is 50% in 2020 and 20% in 2021. For example, if an employer had $49,000 of gross receipts in Q2 2020 compared to $100,000 of gross receipts in Q2 2019, this 51% decline would qualify the employer under the SDGR. Similarly, an employer with $79,000 of gross receipts in Q1 2021 compared to $100,000 gross receipts in Q1 2019, would also meet the SDGR test for Q1 2021. Note that in nearly all cases, if a business qualifies under this test for a quarter, they will qualify automatically for the following quarter, provided at least 6 months of eligibility. The look-forward and look-back tests can be quite complicated and we work with our clients closely to help evaluate eligibility.
Even if a company doesn’t meet the SDGR, they can still qualify if they meet the full or partial suspension of operations test, or FPSO. The full or partial suspension test applies for the periods of time when the operations of a business are shut down due to government order, or are subject to certain restrictions / modifications while they are allowed to keep their doors open (such as reductions in operating hours and capacity limit restrictions). An example of a partial suspension is a restaurant that was forced to move to take-out or delivery only, or was forced to move to a reduced capacity limit with dine-in service due to social distancing requirements. A gym or fitness center that is required to move to appointment-only, reduced capacity, closed day-care facilities, etc. might also qualify under the partial suspension test. A doctor’s office that does more than a nominal amount of elective procedures will almost always have a partial suspension for some period of time. A lesser known partial suspension can occur when a business is affected due to supplier related issues. For example, a business that cannot obtain materials or supplies from vendors that were shut down by COVID-19, can also translate into the first business being treated as partially suspended. Finally, there are complex rules that look at businesses with multiple locations, segments, or divisions and can cause the entire business to be treated as partially suspended, even if only due to one of locations, segments, or divisions.
Do I only qualify if I had a revenue reduction?2023-08-27T15:55:57-04:00

Revenue reduction is only one of a few ways that qualifies or disqualifies a business from ERC. If you can demonstrate interruption in business operations in each quarter, we can help you document and present to become qualified for the ERC.

What wages qualify for the ERC?2023-08-27T15:56:14-04:00

Wages/compensation, in general, that are subject to FICA taxes, as well as qualified health expenses will qualify when determining the Employee Retention credit. Payment must have been made after March 12, 2020 and qualify for the credit if paid through Dec 31, 2021.

Will the ERC funds run out?2023-08-27T15:56:29-04:00

All eligible employers will receive the funds. Tax refunds are issued by the U.S. Treasury. This is not a lending program.

What if I claimed a PPP loan? Do I still qualify for Employee Retention Credit?2023-08-27T15:56:46-04:00

Yes! Before the Consolidated Appropriations Act (CAA) was passed in December 2020, businesses could not claim ERC if they had accepted a PPP loan. With the updated CAA, businesses are eligible in 2021 even if they claimed a Paycheck Protection Program loan.

How do I qualify?2023-08-27T15:57:05-04:00

A business is eligible if they meet one of two tests. Only one test is required and it’s possible to qualify under one test for one period, and another test for a different period.
The first test is a quantitative test that was developed as an objective measure of whether COVID-19 impacted a company’s ability to generate revenues comparable to pre-COVID levels. This test is referred to as the “Substantial Decline in Gross Receipts” test, or SDGR. This test looks to compare quarterly periods in 2020 and 2021 to the same quarterly period in 2019. The relevant percentage threshold is 50% in 2020 and 20% in 2021. For example, if an employer had $49,000 of gross receipts in Q2 2020 compared to $100,000 of gross receipts in Q2 2019, this 51% decline would qualify the employer under the SDGR. Similarly, an employer with $79,000 of gross receipts in Q1 2021 compared to $100,000 gross receipts in Q1 2019, would also meet the SDGR test for Q1 2021. Note that in nearly all cases, if a business qualifies under this test for a quarter, they will qualify automatically for the following quarter, provided at least 6 months of eligibility. The look-forward and look-back tests can be quite complicated and we work with our clients closely to help evaluate eligibility.
Even if a company doesn’t meet the SDGR, they can still qualify if they meet the full or partial suspension of operations test, or FPSO. The full or partial suspension test applies for the periods of time when the operations of a business are shut down due to government order, or are subject to certain restrictions / modifications while they are allowed to keep their doors open (such as reductions in operating hours and capacity limit restrictions). An example of a partial suspension is a restaurant that was forced to move to take-out or delivery only, or was forced to move to a reduced capacity limit with dine-in service due to social distancing requirements. A gym or fitness center that is required to move to appointment-only, reduced capacity, closed day-care facilities, etc. might also qualify under the partial suspension test. A doctor’s office that does more than a nominal amount of elective procedures will almost always have a partial suspension for some period of time. A lesser known partial suspension can occur when a business is affected due to supplier related issues. For example, a business that cannot obtain materials or supplies from vendors that were shut down by COVID-19, can also translate into the first business being treated as partially suspended. Finally, there are complex rules that look at businesses with multiple locations, segments, or divisions and can cause the entire business to be treated as partially suspended, even if only due to one of locations, segments, or divisions.
What is an Eligible Employer?2023-08-27T15:57:24-04:00

Eligible employers are small businesses in the US that carry on a trade or business during the calendar year for 2020 and / or 2021 and have fewer than 500 W-2 employees (special note: you can have more than 500 W-2 + 1099 employees and still qualify, you just can’t have more than 500 W-2 employees). This includes tax-exempt organizations that experienced either of the following:
Full or partial suspension to business operations during any calendar quarter in 2020 and / or 2021. These are attributed to governmental orders that limit commerce, travel or other group meetings due to the COVID-19 pandemic.
Experienced a significant decline in gross receipts (SDGR) during a calendar quarter for 2020 or 2021. For 2020 quarters, SDGR is defined as a decline of at least 50% compared to the same quarter in 2019. For 2021, this metric has been reduced to a decline of at least 20% for the comparable quarter.
What does the ERC Filing Group do for my business?2023-08-27T15:57:39-04:00

We will provide you full ERC services, including filing and claiming your Employee Retention Credit from the IRS. For those that qualify and wish to receive cash fast, we can even arrange for an advance payment of up to 70% of your total credit within as little as 3 – 4 weeks!
Through our process we will collect qualitative and quantitative data to evaluate your eligibility and then perform detailed and complex computations to determine your ERC. Through sophisticated analysis and reporting, we are able to maximize the ERC for clients by carefully selecting how certain wages are treated for PPP versus ERC purposes at the employee level as well as understanding the nuances of a complex tax code.
For all of our clients, we deliver a +10-page report documenting your eligibility as well as the results from our proprietary ERC calculator that supports the numbers used to claim your credit. We then prepare any amended payroll tax returns, Form 941-X(s), and file your ERC claim with the IRS. When we do that, we request a refund check for you.
And when that work is done, we commit to helping you in the future in case there are questions about how you arrived at your IRS filing. We do it all for you!
How long will it take to receive my ERC money?2023-08-27T15:57:54-04:00

Currently, the IRS is not providing any estimates related to the timing of Employee Retention Credit receipt. However, they have indicated that there are over 1.8 million paper payroll tax returns in the queue with the IRS. Our best guess is that you’ll be waiting 6+ months from the filing date of your claim.

Kevin O’Leary “Mr. Wonderful” Endorses ERC Refund (Employee Retention Credit)