ABOUT THE ERC PROGRAM
Let PRIORITY CONCEPTS Help Your Business Find the Funding It Deserves
What is the Employee Retention Credit (ERC)?
ERC is a stimulus program designed to help those businesses that were able to retain their employees during the COVID-19 pandemic. Established under the CARES Act, it is a refundable tax credit – a grant, not a loan – that you can claim for your business.
The ERC is available to both small and mid-sized businesses. It is based on qualified wages and healthcare paid to employees.
How much are the grants?
Up to $26,000 per employee.
What time period is it based on?
Available for 2020 and the first 3 quarters of 2021.
What does a business need to qualify?
Qualify with decreased revenue or material change in business due to COVID.
Does the program have limited amount of funds?
What form does the grant take?
The ERC is a refundable tax credit.
How much money can you get back?
FREQUENTLY ASKED QUESTIONS
To qualify, your business must have been negatively impacted in either of the following ways:
o A government authority required partial or full shutdown of your business during 2020 or
2021. This includes your operations being limited by supply chain shutdowns, inability to
travel, restrictions of group meetings, or other conditions.
o Gross receipt reduction criteria is different for 2020 and 2021 but both are measured
against your 2019 numbers.
o A business can be eligible for one quarter and not another.
Initially, under the CARES Act of 2020, businesses were not able to qualify for the ERC if they had already received a Paycheck Protection Program (PPP) loan. With new legislation in 2021, employers are now eligible for both programs. There can, however, be a deduction against the amount you are eligible for.
o Thorough eligibility evaluation
o Comprehensive analysis of your claim(s)
o Expertise on the claims process and required documentation that an ordinary CPA or payroll processor will not have
o Seamless end-to-end process from application to receipt refunds
o How does the PPP loan factor into the ERC?
o What are the differences between the 2020 and 2021 programs and how does it apply to your business?
o What are aggregation rules for larger, multi-state employers, and how do I interpret multiple states’ executive orders?
o How do part-time, union, and tipped employees affect the amount of my refunds?
Ø The program began on March 13th, 2020, and ends on September 30, 2021, for eligible employers.
Ø Under the current rules, you can apply for refunds for 2020 and 2021 until January 1, 2024.
Ø We have clients who have received refunds from $100,000 to $6 million
Yes. Under the Consolidated Appropriations Act, businesses can now qualify for the ERC even if they already received a PPP loan. Note, though, that the ERC will only apply to wages not used for the PPP.
Your business qualifies for the ERC if it falls under one of the following:
Ø A government authority required partial or full shutdown of your business during 2020 or 2021.
This includes your operations being limited by commercial restrictions, inability to travel or limitations on group meetings.
Ø The gross receipt reduction criteria is different for 2020 and 2021 but are both measured against
your 2019 numbers.
Yes. To qualify, your business must meet either one of the following criteria:
Ø Experienced a decline in gross receipts by 20%
Ø Had to change business operations due to government mandates or other COVID-19 factors. A change in business can include shifts in job roles, the purchase of extra protective equipment, or many other qualifying conditions.
Some examples include:
o Change in business hours
o Partial or full suspension of your operations
o Shutdowns of your supply chain or vendors
o Reduction in services offered
o A disruption in your business
o Inability to visit a client’s job site
o Suppliers were unable to make deliveries of critical goods or materials
o Change in job roles/functions
o Lack of travel
o Lack of group meetings
WHY CHOOSE PRIORITY CONCEPTS?
Ø We offer unparalleled expertise in determining your eligibility for ERC.
Ø We provide a comprehensive analysis and feedback on your claim.
Ø We deliver expert guidance throughout the claims process including documents and stipulations.
Ø Our team has specific program experience unavailable through CPAs and other tax professionals.
Ø We offer a seamless, painless process from beginning to end.
PRIORITY CONCEPTS: OUR MISSION
Our team is comprised of experts with decades of combined experience with business taxes, government programs, and business funding.
We realized that many business owners were struggling to access government programs designed to provide them with financial stability. We are here to maximize your profitability!
Navigating complex government programs can be frustrating. Our team puts a stop to that through expert analysis and fast-tracking your funding application.
Our mission is simple – to take the confusion out of applying for ERC program funds and ensure that business owners just like you can enjoy peace of mind and financial stability.