ERC Eligibility: 5-Minute Questionnaire

Employers across all industries are claiming an Employee Retention Tax Credit (ERC) of up to one million dollars (and sometimes more). Organizations of all types (including tax-exempt nonprofit organizations) are still eligible, even if they have received PPP loans or other pandemic assistance. To determine if your organization could claim an ERC, take this short questionnaire developed by MP’s HR and payroll experts. Your business may qualify with just one “yes” answer. The questions are divided into a few categories: general questions, restrictions, social distancing and hours of operation, suppliers and vendors, and remote work. (If your organization does qualify, MP’s payroll services experts can help get your ERC in process in as little as 15 minutes.)

ERC Eligibility Questionnaire

ERC General Questions

1. Can your organization demonstrate a 2020 revenue loss of 50% or more for a calendar quarter as compared with the same quarter in 2019?

2. Can your organization demonstrate a 2021 revenue loss of 20% or more in any quarter(s) of the year as compared to the same quarters of 2019?

3. Were employee hours ever limited by government orders in 2020 or 2021?

4. Were your employees ever unable to go to work due to government orders in 2020 or 2021?

Restrictions and the ERC

1. Were there ever any restrictions on the use of your organization’s physical space due to government mandates, thus impacting your ability to serve customers and clients?

2. Did any government orders obstruct your business from operating at its maximum capacity?   

3. Were your employees ever unable to use your physical workspace or your organization’s physical assets due to government orders?  

4. Restaurants/hospitality: Were you ever required by government orders to reduce hours of operation to limit the selling of alcohol?

5. Did federal or local mandates ever require you to reduce hours to clean and sanitize?  

Social Distancing and Hours of Operation

1. Did your business ever have a limitation on gatherings, (which affected operations) due to government mandates?

2. Was there ever a partial or complete shutdown of your business or organization due to government mandates?  

3. Did your clients or customers need to socially distance on your business premises due to government mandates?  

4. Were your hours ever limited in any way due to government mandates?  

Suppliers and Vendors and the ERC

1. Did pandemic-related government mandates create supplier chain issues that impacted your business or organization’s ability to serve your clients or customer base?

2. Did your business ever experience a service provider disruption due to government mandates during the pandemic?  

Remote Work and the ERC

1. Were your employees ever required to work remotely, resulting in limitations on their performance?   

2. Were your employees ever restricted from working on-premises due to government mandates?