Employee Retention Credit (ERC) Frequently Asked Questions
The ERC is a refundable tax credit for businesses that continued to pay employees during the COVID-19 pandemic despite experiencing business decline or closure.
Eligibility for the ERC has been expanded to include employers who received Paycheck Protection Program (PPP) loans. If your business experienced a significant decline in gross receipts during 2020 and/or 2021, and you retained your employees, you may be eligible for the ERC.
A significant decline occurs when your gross receipts for a quarter in 2020 or 2021 were less than 50% of the gross receipts for the same quarter in 2019. For 2021, the decline threshold was reduced to 20%.
A full or partial suspension of operations occurs when an appropriate governmental authority imposes restrictions due to COVID-19 that limit your business’s ability to operate, such as capacity restrictions.
Yes, businesses that received a PPP loan can claim the ERC, but the same wages cannot be used for both the PPP loan forgiveness and the ERC.
You can claim the ERC on an original or adjusted employment tax return for the relevant period.
Newly established businesses may qualify as a recovery startup business for the ERC in the third and fourth quarters of 2021.
ERC Legal, in affiliation with Forman Law Office, specializes in helping businesses claim the ERC. We provide extensive knowledge of the ERC, qualifications, and legal represented filing backed by audit protection.
Advanced Merchant Services, led by William Powell, is a leading provider of merchant services in the region. Despite their success, the COVID-19 pandemic had a significant impact on their business operations. Like many businesses, they had to adapt quickly to changing market conditions and ensure the continued employment of their staff.
Like many business owners, William was focused on navigating through the immediate challenges posed by the pandemic. In the midst of these challenges, the Employee Retention Credit (ERC) was a resource he was unaware of. Without knowledge of this potential financial relief, Advanced Merchant Services was missing out on a significant opportunity to alleviate some of their financial strain.
Upon being introduced to the ERC Legal Team, William was provided with a thorough understanding of the ERC. The team conducted a comprehensive assessment of Advanced Merchant Services, determining their eligibility for the ERC and the potential amount of credit they could claim.
The ERC Legal Team took over the process, managing all aspects of the claim including the complex calculations and detailed filing process. They navigated the complexities of the legal requirements, ensuring accuracy and compliance throughout the process.
Thanks to the expertise of the ERC Legal Team, Advanced Merchant Services was able to claim a substantial amount through the ERC, providing much-needed financial relief during a challenging economic time. The team's efficient and professional service allowed William to focus on running his business, secure in the knowledge that the ERC claim was being handled by experts.
William Powell, CEO of Advanced Merchant Services, noted: "Working with the ERC Legal Team opened our eyes to an opportunity we didn't know existed. Their professionalism, knowledge, and service were exceptional. They took a complex process and made it simple, providing us with financial relief when we needed it most."
The ERC Legal Team's expertise and client-focused service helped Advanced Merchant Services uncover and claim a significant financial resource in the form of the ERC. This case demonstrates the value of specialized knowledge and professional service in navigating complex business challenges.
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