Time is Running Out!
Employee Retention Tax Credit (ERC)
Time may be running out! Take advantage of the ERC tax credit before the tax deadline is here. If your business has been impacted by the pandemic, you’re likely to be eligible.
Our experts have assisted hundreds of businesses in obtaining six and seven figure awards in pandemic aid with minimal turnaround time and client workload. There are no upfront fees.
Schedule a 15-minute meeting to see if you’re eligible.
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We are 100% success-based: There are no upfront fees. MP-HR™ is paid based on a small percentage of what you receive- only when you receive your funds. (Many competitors require payment before funds are recouped!)
Why partner with
MP-HR for ERC?
While you have many choices for ERC service providers it is hard to know who to trust! MP is a full-service HR solution company and has the deep expertise and experience to help your business or nonprofit claim the maximum IRS compliant credit. Our team of experts will assess and guide you through the process to see if you qualify for the ERC. If you do not qualify that is ok at least you have the peace of mind you checked! The IRS has 5 years to go back and audit all ERC claims, so we want to make sure we do it correctly the first time. We also assist with any IRS correspondence and audit response. Your ERC will be received via federal payroll taxes. MP-HR’s ERC team is led by a multi-disciplinary group of payroll, HR, and Tax experts with decades of experience.
ERC Tax Credit Case Study
What is
ERC tax credit?
The Employee Retention Credit (commonly referred to as the ERC) is a payroll tax credit employers may claim to assist with recovery from the pandemic and employee retention. Recipients could recoup this tax credit as an advanceable cash refund. They may also apply it to their taxes, reducing current and future payroll taxes. The program was created by The CARES Act in March 2020 and expanded by the American Rescue Plan Act to increase eligibility significantly for employers. Employers could claim an Employee Retention Credit (ERC) of up to $26,000 per employee over 2020 and 2021.
Eligibility
Who Can Claim Employee Retention Credit
If your organization experienced a significant decline in gross receipts (at least 20%).
OR
If your operations were impacted during any calendar quarter from 2020 to the third quarter of 2021, you may be eligible for an ERC over $1 million.
Our Process
How Does MP-HR Help You Claim Your Maximum ERC?
PHASE 1
Opportunity Analysis
MP will assist your team in collecting payroll data, gross receipts, proof of partial or full suspension, payroll information, and any relevant PPP funds data. We’ll provide an estimate for your maximum ERC tax credit and timing to obtain it.
PHASE 2
Credit Monetization
Our experts will accelerate realization of ERC funds. We’ll work with you and your payroll team and provider to quickly gather necessary data.
PHASE 3
Analysis and Documentation
Our team will create a thorough ERC tax study of your claim. This process includes:
- Computations for qualification in 2020 and 2021
- Data for your qualified wages for credit
- Your use of PPP loans and how they affect your ERC claim
- Technical documentation of your eligibility for the ERC
- Responses to any of your unique complications and calculation of your ERC
Why Work with MP-HR’s ERC Services
100% success-based: There are no upfront fees. MP is paid based on a small percentage of what you receive– only when you receive your funds. (Many competitors require payment before funds are recouped.)
Faster turnarounds: Our team ensures you receive maximum funds with minimum turnaround times. Our experts streamline the process and dramatically reduce any time and effort your team contributes to the process.
ERC expertise: Our industry-specific experts understand the nuances of this complex program. We’ve helped hundreds of businesses that didn’t know they were eligible to qualify for hundreds of thousands of dollars in funds.
Audit protection: Trust MP’s experts to ensure your claim is accurate and defensible. We prepare your paperwork and records to keep in case of an audit. Additionally, MP promises to assist any audited clients and resolve IRS concerns.
1 free year of HR services: As part of our ERC services, many clients qualify for one free year of HR services. Our SHRM-certified HR experts conduct a comprehensive audit of your HR policies and employee handbook, then provide a thorough, proactive roadmap for success. Learn more.
Tax Saving Scenarios
Restaurant and Brewery
Credit Received: $1.5 million
Employee Count: 100
“First, our taproom was closed due to government orders. Then, we were required to limit our customer capacity. When restrictions lifted, we were still eligible for an ERC because of a drastic reduction in our gross receipts. Working with MP was a hassle-free, seamless process that enabled us to claim an Employee Retention Tax Credit of $1.5 million!”
Professional Services Firm
Credit Received: $500k
Employee Count: 60
“Our 60-employee immigration law firm worked with MP to claim an Employee Retention Tax Credit (ERC) of over $500,000. We claimed this ERC based on a profound reduction in gross receipts over 2020 and 2021. This reduction in gross receipts was a direct effect of government orders and court closures, both of which halted immigration procedures, sometimes completely.”
Healthcare Provider
Credit Received: $400k
Employee Count: 50
“Our home healthcare company claimed an Employee Retention Tax Credit (ERC) of over $400,000. We based our claim on difficulty retaining staff during the pandemic. This staffing challenge profoundly decreased our revenue. The funds MP helped us recoup will facilitate our pandemic recovery.”
Health and Fitness Center
Credit Received: $100k
Employee Count: 20
“MP was easy to work with and very knowledgeable about the ERC program, helping our 20-person gym claim an Employee Retention Tax Credit (ERC) of $100,000. Over 2020 and 2021, our membership dropped significantly, and masking and social distancing requirements forced us to limit class size. Our ERC funds will help our company recover from the resulting dramatic reduction in gross receipts.”
Restaurant
Credit Received: $770k
Employee Count: 200
“MP helped our restaurant group claim an Employee Retention Tax Credit (ERC) of over $770,000. These funds will help us get back on our feet after the economic downturn. Our ERC eligibility covered all four locations and 200 employees. A combination of temporary shutdown orders and restrictions on customer capacity and alcohol sales impacted our business. MP’s ERC knowledge and industry expertise was a tremendous resource.”
Construction Firm
Credit Received: $1.7 million
Employee Count: 70
“Our construction firm claimed $1.7 million in Employee Retention Tax Credit (ERC), based on government shutdowns, supply chain issues, and the resulting limitation to business operations. We suffered a severe reduction in gross receipts over 2020 and 2021. MP helped us streamline and optimize our ERC claim, offsetting the losses of the past year.”
Daycare & Preschool
Credit Received: $500k
Employee Count: 80
“MP assisted our 80-employee daycare and preschool in claiming an Employee Retention Tax Credit (ERC) of over $500,000. Over 2020 and 2021, our gross receipts reduced significantly due to government shutdowns and restrictions. Compliance with government orders required reduced class sizes. We also experienced difficulty hiring and retaining employees. MP is highly organized and streamlined the entire ERC process.”
Entertainment Center
Credit Received: $550k
Employee Count: 120
“MP helped our 120-employee entertainment center claim an Employee Retention Tax Credit (ERC) of $550,000. We claimed our ERC based on a dramatic reduction in gross receipts, which we sustained through 2020 and 2021. In addition, government orders restricted our business operations. These orders reduced our hours and ability to serve alcohol to patrons. Working with MP made this complex IRS procedure a pleasant, stress-free process.”
Private School
Credit Received: $700k
Employee Count: 60
“MP helped our private school. Qualify for the ERC based on two factors. Firstly, we had to shut down our in-person learning, sports programs, trips, and major school functions from March 2020 through the autumn of 2020. These functions constituted a substantial portion of our operations and hours worked. The second qualifying factor was that we experienced a dramatic reduction in gross receipts through both 2020 and 2021. Due to the pandemic, we had a drastic enrollment decrease, resulting in a discontinuation of the high school portion of our offerings. The impact of the pandemic on our school was deeply stressful, but working with MP to claim our ERC was not. MP’s experts streamlined the workload and process and helped us claim our maximum, much-needed funds as quickly as possible.”
Employee Retention Tax Credit FAQ
What is ERC tax credit?
The Employee Retention Tax Credit is a refundable, advanceable tax credit program. Eligible recipients may be in anticipation of receiving funds of $1 million or more. They may also apply their funds to reduce future employee payroll taxes.
How do employers claim an ERC?
The ERC is an IRS-run program. Employers should work with specialists, such as MP, who offer ERC services to develop their claims. Claims are based on employee wages paid during 2020 and 2021 quarters when the employer is eligible.
Does the employee retention credit have to be paid back?
No. This program offers employers funds, not loans.
How is the ERC calculated?
The ERC is calculated based on a few factors: an employers’ decline in gross receipts and the amount of employees they’ve paid wages for in any quarter of 2020 or the first three quarters of 2021.
Who is eligible for the ERC?
Employers of all sizes (from small business to large corporation) and across all industries are eligible to claim an ERC. (Nonprofits are also eligible.) Eligibility is determined by whether an employer had a significant decline in gross receipts or if pandemic government orders impacted its business operations.
Have other tax needs?
MP-HR is wired to help our clients save thousands in employment taxes every year. Our experts will help you complete your quarterly federal tax return, identify the latest tax incentives, and streamline your claim process.