Frequently Asked Questions
The ERC Professional Group is a specialty tax service affiliated with a Florida Tax Law firm which together are exclusively devoted to understanding, interpreting, maximizing and then claiming the CARES Act Employee Retention Credit (ERC) for businesses impacted by Covid-19.
No. The Employee Retention Credit is a fully refundable tax credit that eligible employers claim against certain employment taxes. It is not a loan and does not have to be paid back.
Our service charge is based on a percentage of the credit recovered. We calculate and provide our fee along with our free analysis. In addition, our fee includes the cost of a Legal Tax Opinion Letter by a CPA – Tax Lawyer with an L.L.M. in Taxation. Using the right team for this process pays for itself. Check out our fee structure here.
Yes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted 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 claim the ERC with respect to PPP funds used to pay payroll that were forgiven – no double dipping! We consider this when calculating your ERC credit.
To check the status of your refund, you can call the IRS directly at (877) 777-4778. You can also always reach out to our Client Success Manager for updates and assistance during the refund processing period.
It has taken our clients three to six months to receive their refund from the IRS. If you need the funds sooner, we work with several lenders who will advance up to 65% of the ERC amount, particularly when your ERC Application is supported with a Legal Tax Opinion Letter.
Determining the proper amount of a refund is a complex accounting process, requiring detailed accounting schedules which can facilitate the processing of the amended payroll tax returns. The credit is based upon 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.
PPP was a forgivable loan. ERC refunds the payroll taxes that your business previously paid. Once your business receives the ERC funds from the US Treasury, it does not have to pay back the credit unless of course the IRS later determines that your business does not qualify.
If your business experienced disruptions or was negatively impacted by Covid-19 due to a government order, it may qualify. These disruptions might include supply chain disruptions, price increases, reduced hours, reduction in goods or services offered, inability to travel or attend conventions. Talk to one of our ERC Specialists to find out more.
Yes. Both Essential and Non-essential businesses can qualify, and a decline in revenue is not a requirement. Many businesses that qualify have had increases in sales, yet still experienced disruptions or were negatively impacted.
