We Specialize in Maximizing the Employee Retention Credit (ERC) Program
About The ERC Program
ERC is a stimulus program designed to help those businesses that were able to retain their employees during the Covid-19 pandemic.
Established by the CARES Act, it is a refundable tax credit – 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.
The Employee Retention Credit
BLC launched our Government Aid Division to help small businesses impacted by Covid-19
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Miami, FL 33160
Our Results
Businesses Enrolled
23,570
Credits Recovered
$4,164,600,400
Employees Qualified
474,249
GET QUALIFIEDFind Out If Your Business Qualifies
Get StartedNo initial fees
Compatible with the PPP
The ERC is a free tax refund for businesses, not a loan
Find Out If Your Business Qualifies
Answer a few simple questions.
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What is the Employee Retention Credit (ERC)?
To qualify, your business must have been negatively impacted in either of the following ways:
How do you know if your business is eligible?
Up to $26,000 per employee
Available for 2020 and the first 3 quarters of 2021
Qualify with decreased revenue or COVID event
No limit on funding
ERC is a refundable tax credit
A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.
A business can be eligible for one quarter and not another during the COVID pandemic.
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. The ERC, though, cannot apply to the same wages as the ones for PPP.
You can claim up to $5,000 per employee for 2020. For 2021, the credit can be up to $7,000 per employee per quarter.
How much money can you get back?
Why Us
The ERC underwent several changes and has many technical details, including how to determine qualified wages, which employees are eligible, and more. Your business’ specific case might require more intensive review and analysis. The program is complex and might leave you with many unanswered questions.
We can help make sense of it all. Our dedicated experts will guide you and outline the steps you need to take so you can maximize the claim for your business.
Thorough evaluation regarding your eligibility
Comprehensive analysis of your claim
Guidance on the claiming process and documentation
Specific program expertise that a regular CPA or payroll processor might not be well-versed in
Services
Fast and smooth end-to-end process, from eligibility to claiming and receiving refunds
Dedicated specialists that will interpret highly complex program rules and will be available to answer your questions, including:
How does the PPP loan factor into the ERC?
What are the differences between the 2020 and 2021 programs and how does it apply to your business?
What are aggregation rules for larger, multi-state employers, and how do I interpret multiple states’ executive orders?
How do part-time, Union, and tipped employees affect the amount of my refunds?
Ready To Get Started? It’s Simple.
Do You Qualify?
How do part-time, Union, and tipped employees affect the amount of my refunds?
- We determine whether your business qualifies for the ERC.
- We analyze your claim and compute the maximum amount you can receive.
- Our team guides you through the claiming process, from beginning to end, including proper documentation.
Frequently
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GovernmentAid, a division of Bottom Line Concepts, assists clients with various forms of financial relief, particularly, the Employee Retention Credit Program.
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Can I apply for ERC if I'm self-employed?
No. Only W-2 employee wages can be claimed, and you cannot claim your own wages as a majority owner even if you are on a W-2 wage.
Can I apply for ERC if I have 1099 employees?
No. Only W-2 employee wages can be claimed for the credit.
Can I get ERC if my business revenue went up?
Yes! Your business will be able to qualify for ERC if you had a full or partial suspension of operations.
What are qualified wages for ERC?
The Employee Retention Credit (ERC) uses qualified wages as the basis for its calculation, which covers any wages paid that are subject to FICA taxes. These qualified wages can include various types of compensation, such as salaries, hourly wages, vacation pay, and certain health plan expenses, among others.
What period does the program cover?
The program began on March 13th, 2020 and ends on September 30, 2021, for eligible employers. You can apply for refunds for 2020 and 2021 after December 31st of this year, into 2022 and 2023. And potentially beyond then too. We have clients who received refunds only, and others that, in addition to refunds, also qualified to continue receiving ERC in every payroll they process through December 31, 2021, at about 30% of their payroll cost. We have clients who have received refunds from $100,000 to $6 million.
Do we still qualify if we already took the PPP?
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.
Do we still qualify if we did not incur a 20% decline in gross receipts?
Your business qualifies for the ERC, if it falls under one of the following:
• A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
• Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.
• A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
• Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.
Are there any restrictions on how I can spend my ERC refund?
Unlike a loan or other form of business funding, the Employee Retention Credit (ERC) is a fully refundable tax credit that does not come with limitations on how it can be spent. As a result, businesses that qualify for the ERC can choose to spend their refund in any way they see fit.
Will I have to repay the ERC?
No, unlike a loan, this credit does not have to be repaid. If audited the IRS has the right to claw back the funds.
Do we still qualify if we remained open during the pandemic?
To qualify, your business must have been negatively impacted in either of the following ways:
• A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
• Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts. 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.
• A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
• Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts. 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.
What time period does the ERC program cover?
The ERC program covers eligible wages paid to W-2 employees from March 13th, 2020 through September 30th, 2021 for eligible employers.
What is the Employee Retention Credit?
The employee retention credit (ERC) is a refundable payroll tax credit that was put into law through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The ERC is for businesses that continued to pay employees while shut down due to COVID -19 restrictions or had significant decline in gross receipts from March 13, 2020 to September 30, 2021. This credit offsets employment taxes paid by an employer to offer relief from the COVID-19 pandemic.
When does the ERC program end?
The deadline for claiming the ERC for eligible quarters in 2020 is April 15, 2024. The deadline for claiming the ERC for eligible quarters in 2021 is April 15, 2025.
How do I receive my ERC refund?
The ERC will be issued in the form of a cash refund that you will receive in the mail from the IRS. The IRS will send checks based on qualifying quarters. You may receivce several checks (e.g., one check per quarter). The IRS reserves the right to use funds as a credit towards back taxes.
Do I have to refile my income taxes return if I apply for ERC?
“Yes, you will need to refile your income tax returns. The IRS has indicated your company’s wage expense (deduction) on their income tax return must be reduced by the amount of the ERC for the applicable tax year (2020 or 2021). You will need to file an amended federal and state income tax return for the taxable year of the credit to correct any overstated wage deduction.
Note: Any interest paid to you by the IRS would have to be reported on your income tax filing.”
Note: Any interest paid to you by the IRS would have to be reported on your income tax filing.”
Why did the IRS issue a warning about 3rd party processing companies?
The IRS issued these warnings, as there are many fly-by-night, so-called ERC “experts” or “consultants” that are misrepresenting their experiences and the parameters of the ERC program to employers. The ERC is a complicated tax program that requires deep expertise and understand of the nuances. When choosing an ERC company look for companies with a proven real track record and watch out for red flags (e..g, large upfront cost, no CPAs or tax professionals on staff).
How long does the IRS have to audit my ERC?
The IRS Audit period for ERC is:
3 years for 2020 and Q1,Q2 of 2021
5 years for Q3 of 2021
3 years for 2020 and Q1,Q2 of 2021
5 years for Q3 of 2021
How long will it take to receive my refund?
While the timeline may vary based on the IRS workload, we are seeing clients receive refunds within a 4-10 month timeframe from filing. The timeline may vary as the IRS’s process varies.
How much ERC can I claim per eligible employee?
The Employee Retention Credit (ERC) allows employers to claim a maximum credit amount of $26,000 per employee. For the tax year 2020, employers can claim up to 50% of qualified wages per employee, with a maximum credit of $5,000 per employee for the entire year. In contrast, for the tax year 2021, employers can claim up to 70% of qualified wages per employee per quarter, with a maximum credit of $21,000 per employee for the year. However, it’s worth noting that most businesses will only be eligible to claim qualified wages for Q1 through Q3 of 2021.
Does my business qualify if we've already received PPP?
Yes. Under the Consolidated Appropriations Act (CAA), businesses can qualify for the ERC even if they already received a PPP loan. Employers are allowed to claim ERC on wages that were not paid with the proceeds of a PPP loan. It is important to note that you can’t use wages to calculate ERC that were used to qualify for PPP loan forgiveness. This is known as “double dipping” and is not permitted by the IRS.
Can my business qualify with a decline in gross receipts?
“Yes, your business qualifies for the ERC with a drop in revenue if it had a significant decline in gross receipts. The meaning of a significant decline in gross receipts differs between 2020 and 2021.
In 2020, a significant decline is defined as a 50% decrease compared to the same calendar quarter in 2019.
In 2021, a significant decline is defined as a 20% decrease compared to the same calendar quarter in 2019.”
In 2020, a significant decline is defined as a 50% decrease compared to the same calendar quarter in 2019.
In 2021, a significant decline is defined as a 20% decrease compared to the same calendar quarter in 2019.”
How do I qualify for ERC?
“To qualify for the ERC, an employer must meet one of the following requirements:
• A significant decline in gross receipts for any eligible quarter in 2020 or 2021- defined as a 50% reduction in revenue during any quarter in 2020 compared to the same quarter in 2019, or a 20% reduction in revenue in any quarter of 2021 compared to the same quarter in 2019.
• A full or partial suspension of operations – due to orders from the federal government, or a state government having jurisdiction over the employer, limiting commerce, travel, or group meetings related to COVID-19. “
• A significant decline in gross receipts for any eligible quarter in 2020 or 2021- defined as a 50% reduction in revenue during any quarter in 2020 compared to the same quarter in 2019, or a 20% reduction in revenue in any quarter of 2021 compared to the same quarter in 2019.
• A full or partial suspension of operations – due to orders from the federal government, or a state government having jurisdiction over the employer, limiting commerce, travel, or group meetings related to COVID-19. “
Can I apply for ERC if I'm self-employed?
No. Only W-2 employee wages can be claimed, and you cannot claim your own wages as a majority owner even if you are on a W-2 wage.
Can I apply for ERC if I have 1099 employees?
No. Only W-2 employee wages can be claimed for the credit.
Can I get ERC if my business revenue went up?
Yes! Your business will be able to qualify for ERC if you had a full or partial suspension of operations.
What are qualified wages for ERC?
The Employee Retention Credit (ERC) uses qualified wages as the basis for its calculation, which covers any wages paid that are subject to FICA taxes. These qualified wages can include various types of compensation, such as salaries, hourly wages, vacation pay, and certain health plan expenses, among others.
What period does the program cover?
The program began on March 13th, 2020 and ends on September 30, 2021, for eligible employers. You can apply for refunds for 2020 and 2021 after December 31st of this year, into 2022 and 2023. And potentially beyond then too. We have clients who received refunds only, and others that, in addition to refunds, also qualified to continue receiving ERC in every payroll they process through December 31, 2021, at about 30% of their payroll cost. We have clients who have received refunds from $100,000 to $6 million.
Do we still qualify if we already took the PPP?
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.
Do we still qualify if we did not incur a 20% decline in gross receipts?
Your business qualifies for the ERC, if it falls under one of the following:
• A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
• Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.
• A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
• Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.
Are there any restrictions on how I can spend my ERC refund?
Unlike a loan or other form of business funding, the Employee Retention Credit (ERC) is a fully refundable tax credit that does not come with limitations on how it can be spent. As a result, businesses that qualify for the ERC can choose to spend their refund in any way they see fit.
Will I have to repay the ERC?
No, unlike a loan, this credit does not have to be repaid. If audited the IRS has the right to claw back the funds.
Do we still qualify if we remained open during the pandemic?
To qualify, your business must have been negatively impacted in either of the following ways:
• A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
• Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts. 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.
• A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
• Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts. 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.
What time period does the ERC program cover?
The ERC program covers eligible wages paid to W-2 employees from March 13th, 2020 through September 30th, 2021 for eligible employers.
What is the Employee Retention Credit?
The employee retention credit (ERC) is a refundable payroll tax credit that was put into law through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The ERC is for businesses that continued to pay employees while shut down due to COVID -19 restrictions or had significant decline in gross receipts from March 13, 2020 to September 30, 2021. This credit offsets employment taxes paid by an employer to offer relief from the COVID-19 pandemic.
When does the ERC program end?
The deadline for claiming the ERC for eligible quarters in 2020 is April 15, 2024. The deadline for claiming the ERC for eligible quarters in 2021 is April 15, 2025.
How do I receive my ERC refund?
The ERC will be issued in the form of a cash refund that you will receive in the mail from the IRS. The IRS will send checks based on qualifying quarters. You may receivce several checks (e.g., one check per quarter). The IRS reserves the right to use funds as a credit towards back taxes.
Do I have to refile my income taxes return if I apply for ERC?
“Yes, you will need to refile your income tax returns. The IRS has indicated your company’s wage expense (deduction) on their income tax return must be reduced by the amount of the ERC for the applicable tax year (2020 or 2021). You will need to file an amended federal and state income tax return for the taxable year of the credit to correct any overstated wage deduction.
Note: Any interest paid to you by the IRS would have to be reported on your income tax filing.”
Note: Any interest paid to you by the IRS would have to be reported on your income tax filing.”
Why did the IRS issue a warning about 3rd party processing companies?
The IRS issued these warnings, as there are many fly-by-night, so-called ERC “experts” or “consultants” that are misrepresenting their experiences and the parameters of the ERC program to employers. The ERC is a complicated tax program that requires deep expertise and understand of the nuances. When choosing an ERC company look for companies with a proven real track record and watch out for red flags (e..g, large upfront cost, no CPAs or tax professionals on staff).
How long does the IRS have to audit my ERC?
The IRS Audit period for ERC is:
3 years for 2020 and Q1,Q2 of 2021
5 years for Q3 of 2021
3 years for 2020 and Q1,Q2 of 2021
5 years for Q3 of 2021
How long will it take to receive my refund?
While the timeline may vary based on the IRS workload, we are seeing clients receive refunds within a 4-10 month timeframe from filing. The timeline may vary as the IRS’s process varies.
How much ERC can I claim per eligible employee?
The Employee Retention Credit (ERC) allows employers to claim a maximum credit amount of $26,000 per employee. For the tax year 2020, employers can claim up to 50% of qualified wages per employee, with a maximum credit of $5,000 per employee for the entire year. In contrast, for the tax year 2021, employers can claim up to 70% of qualified wages per employee per quarter, with a maximum credit of $21,000 per employee for the year. However, it’s worth noting that most businesses will only be eligible to claim qualified wages for Q1 through Q3 of 2021.
Does my business qualify if we've already received PPP?
Yes. Under the Consolidated Appropriations Act (CAA), businesses can qualify for the ERC even if they already received a PPP loan. Employers are allowed to claim ERC on wages that were not paid with the proceeds of a PPP loan. It is important to note that you can’t use wages to calculate ERC that were used to qualify for PPP loan forgiveness. This is known as “double dipping” and is not permitted by the IRS.
Can my business qualify with a decline in gross receipts?
“Yes, your business qualifies for the ERC with a drop in revenue if it had a significant decline in gross receipts. The meaning of a significant decline in gross receipts differs between 2020 and 2021.
In 2020, a significant decline is defined as a 50% decrease compared to the same calendar quarter in 2019.
In 2021, a significant decline is defined as a 20% decrease compared to the same calendar quarter in 2019.”
In 2020, a significant decline is defined as a 50% decrease compared to the same calendar quarter in 2019.
In 2021, a significant decline is defined as a 20% decrease compared to the same calendar quarter in 2019.”
How do I qualify for ERC?
“To qualify for the ERC, an employer must meet one of the following requirements:
• A significant decline in gross receipts for any eligible quarter in 2020 or 2021- defined as a 50% reduction in revenue during any quarter in 2020 compared to the same quarter in 2019, or a 20% reduction in revenue in any quarter of 2021 compared to the same quarter in 2019.
• A full or partial suspension of operations – due to orders from the federal government, or a state government having jurisdiction over the employer, limiting commerce, travel, or group meetings related to COVID-19. “
• A significant decline in gross receipts for any eligible quarter in 2020 or 2021- defined as a 50% reduction in revenue during any quarter in 2020 compared to the same quarter in 2019, or a 20% reduction in revenue in any quarter of 2021 compared to the same quarter in 2019.
• A full or partial suspension of operations – due to orders from the federal government, or a state government having jurisdiction over the employer, limiting commerce, travel, or group meetings related to COVID-19. “