What is the ERC?
The Employee Retention Credit
Learn more about the payroll tax refund that helps eligible businesses receive up to $26,000 per employee that was on payroll during the pandemic. While this program is part of the CARES Package like the PPP it is not a loan and does not need to be paid back.
If you are the owner of a small to medium-sized business, it’s likely that you were negatively impacted by COVID-19 and qualify for the ERC, and you are not alone.
The financial distress faced by the nation prompted Congress to enact the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which included a dedicated provision known as the Employee Retention Credit (ERC) to assist businesses in their recovery efforts.
The aim of the Employee Retention Credit (ERC) was to incentivize and facilitate employers who sustained their workforce during 2020 and the first three quarters of 2021. This was made possible through a sizeable payroll tax rebate by the Internal Revenue Service (IRS).
Businesses that meet the eligibility criteria can claim a rebate of up to $5,000 for each employee retained throughout 2020. Additionally, they can receive up to $7,000 for each employee kept on payroll during each quarter of Q1 through Q3 in 2021. Therefore, businesses that retained employees for the entire duration could receive a maximum refund of $26,000 per employee.
Designed to encourage businesses to keep employees
The program rewards those who kept employees on payroll in 2020 and 2021.
ERC has recently gained popularity
Since it’s original roll out the ERC has undergone expansions and multiple amendments by Congress.
Emergency capital with few restrictions
ERC payments are issued from the treasury like a tax refund
Established by the CARES Act
The same relief bill that the PPP and EIDL stem from
Most businesses which qualify for the ERC have yet to claim their refund.
Many small and medium-sized businesses are eligible for the program. However, many business owners are not taking advantage of this opportunity due to misinformation or outdated information.
At Chiles Capital, we understand that fully comprehending the ERC guidelines can be a complicated and confusing process. ERC qualifications and limitations have been amended by Congress several times since its initial launch.
Additionally, since the ERC is related to your payroll, not your business income tax returns, it requires a series of payroll tax filings that many CPAs may be unfamiliar with or not confident in using. That is why we recommend working with a ERC specialist who can provide you with updated information and help your business get the maximum amount that it’s eligible to receive.
We will calculate your ERC for FREE. Ask us about our advance payment option.
ERC Eligibility Requirements
You must be a “Small Business”
The IRS defines this as any employer who runs a trade, business, or tax exempt organization having fewer than 100 full time employees for 2020 or fewer than 500 for 2021 refund.
Decline In Business Revenue
Experienced a significant decline in gross receipts during the 2021 calendar quarter, more than a 20% decline versus the same quarter in 2019, and a 50% decline in the 2020 calendar year.
Business Was Impacted Government Orders
Had operations that were impacted by a government orders due to COVID-19, resulting in limitations of commerce, travel, or meetings. If your business was impacted by any state or Federal orders you business might qualify.
We recommend that all businesses take advantage of our FREE review even if they have been told they previously didn’t qualify
Check to see what your business is eligible for with no up front cost or commitment
Your refund amount is based on many factors, including:
Number of Employees
Participation in Other Government Programs
Group Health Premiums
How Do I file?
Upon confirming eligibility, it will be necessary to complete the designated tax forms for the year 2020 and relevant quarters of 2021. It is crucial to ensure accuracy in the completion of the forms as the refund process typically takes several months. Failure to complete the forms accurately and completely may lead to rejection and necessitate refiling, causing undue delays and inconvenience.
What Should I know
Time Is Running Out
It is important to note that beginning in 2024, the maximum allowable value that a business can claim under the Employee Retention Credit (ERC) will gradually decrease each quarter. Given that eligibility requirements and restrictions have been subject to modification, it is advisable for businesses to remain vigilant and take advantage of this opportunity before it expires. As more small businesses become aware of the ERC, there is a possibility that processing times for claims may be impacted.
Work With A ERC Specialist
It is imperative that businesses exercise caution when selecting a provider to prepare and file their amended payroll tax returns. Engaging inexperienced providers may result in unfavorable outcomes such as diminished tax refunds, rejected returns, or the need to revisit and refile the amended returns, thus prolonging the process. A tax provider with up-to-date knowledge of all pertinent ERC-related legislation is crucial to ensuring maximum utilization of the available ERC, while minimizing the risk of costly errors that could potentially jeopardize a portion or the entirety of the ERC tax refund.
How Can Chiles Capital Help?
ERC is what we do. We work with a network of over 50 tax attorneys and CPAs who have overseen thousands of claims, processing over $1 billion in ERC refunds.
Our streamlined end-to-end filing process simplifies the complex claims process. And we’re there to support you through the whole process, from eligibility to claiming and receiving funds.
File Your ERC With Confidence
Unlock Every Credit
Our network of expert tax attorneys and CPAs aim to maximize your business’ ERC refund.
No Hidden Fees
No upfront or hidden fees. We only collect a fee when your business gets its refund.
We know the ERC can be confusing. Our team is here to guide you every step of the way.