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The ERC Tax Credit
What is the ERC Tax Credit?

The Employee Retention Credit [ERC] is a payroll tax refund that was created as a part of the COVID Relief Bill (2020) along with the PPP, which incentivizes businesses that kept employees on payroll during the pandemic.

During 2020, you had to choose between either PPP or ERC but you could not choose both. However, through the Consolidated Appropriations Act (2021), the rules have changed and PPP recipients are now eligible for ERC!

ERC is a reimbursement of payroll taxes paid AND wages paid to employees, which allows for up to $26,000 per full-time W-2 employee (excluding owners and family members).

What is the difference from this program compared to PPP?

There are two major differences between PPP & ERC:

ERC is NOT a loan. It is classified as income, which means that you will have to pay taxes on it.

ERC has NO restrictions, which means that the owner(s) of the company can use these funds for personal or business purposes.

How Do I Qualify For The ERC Tax Credit?

There are two ways to qualify for this program:

  1. “Gross receipts test” - Back in 2020, the gross receipts test required that you experienced at least a >50% decline in revenue or gross receipts in order to qualify for this program. That may explain why your accountant may not have brought this to your attention or you were told that you did not qualify for this program. In addition, if you had already received PPP you were disqualified.

    1. Back in 2021, a second qualification, Limited Commerce ,was added to the program.“Limited Commerce” is strictly based on how your operations were affected and has NO correlation to revenue decline. Due to its complexity, we use tax professionals, who specialize in tax credits and business taxes, to qualify over 95% of our clients under “Limited Commerce.”

      Our tax professionals take your companies information, which explains how Covid-19 affected your business in 2020 & 2021. We then use the submitted documents from your business to support your case and avoid any risk of audit in the future.

What Are Next Steps?

  1. You upload the required documents by filling out the questionnaire below. We do not need everything all at once.

  2. Once you have uploaded your documents, we will assign you a representative, who will be your point of contact. He/she will verify information from your Application, look through all of your documents, and will process your documents on your behalf.

    1. After your representative has reviewed all of your documents, he/she will package the documents and send your documents to a tax professional for a final review. Once the review is complete, we will inform you of your exact tax refund amount that you can expect to receive from the IRS. Once you have received your tax credit amount, you will receive our contractual agreement via DocuSign, within 24-48hours. We recommend that you fully read the contract and sign at your earliest convenience. Our contracts do expire within days, which is why we suggest a sense of urgency once you've fully reviewed the contract. Our contract states that you agree to have The ERC Tax Professors complete the work on your behalf and in return, you also agree to pay the stated fee after you have received your cash refund checks. We will disclose our fee in our contract, which is fully paid on the “back-end” meaning 0% of the total refund amount is paid up-front.

      Two things to note about our fee:

      • You can write our fee off as a "consulting fee", which means you’ll only owe taxes on the net refund amount.

      • We also provide full audit protection on all files that do not qualify under the "Gross Receipts Test".

  3. Once the contract has been signed, we will mail the amended tax documents via Form 941-X on your behalf. We have to amend the tax documents because the ERC refund is a reimbursement of your payroll taxes AND wages paid to employees, which is reflected on the Form 941. Since the 941 Forms are quarterly, you will receive quarterly checks and not a large lump sum check directly from the US Treasury.

  4. Once your documents are mailed to the IRS, all you need to do is sit and wait... The IRS has indicated 4-7 month standardized time frame to disburse all of the refunds.

    Additionally, we also have a refund monitoring team dedicated to ensuring that you receive your refund checks and they may periodically follow up with you during the waiting period.

How Do Businesses Qualify for the ERC?

Your US-based business may qualify for ERC if it meets EITHER of the following criteria:

Employee Count

  1. You employed at least 2 W-2 employees in 2020 or 2021.

  1. You employed less than 500 full-time employees in 2019.

Business Impact

You suffered a significant decline in revenue in any quarter of 2020 or 2021 when compared to the same quarter of 2019.

-or-

A government order caused you to significantly modify business operations.

NOTE: Businesses that file an income tax return deducting qualified wages before filing an employment tax return claiming a tax credit should file an amended income tax return to correct any overstated wage deduction. You can read more on this IRS page.

HOW IT WORKS

Streamlined and Efficient Process for Securing a Maximum ERC Tax Credit

Why The ERC Tax Professors?

  • Fast qualification

Our expert team and cutting-edge tools allow us to quickly determine if your business qualifies for the ERC tax credit, saving you time and effort.

  • Maximize tax refund

Our ERC tax credit experts work diligently to identify all eligible credits, ensuring that your business maximizes its tax refund potential.

  • Proven results

Our past clients have received thousands of dollars through our ERC tax credit services and we're confident that we can deliver the same level of success to your business.

Happy Clients

“The ERC’s Tax Professors saved us time and money. Great experience!”

“The process was seamless and the results were impressive. Thanks, ERC Tax Professors!”

“The ERC Tax Professors helped us get a huge tax credit. Highly recommended!”

Still have Questions?

George Owens

The ERC Tax Professors were great. They made the process simple and easy. I definitely recommend!

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