Does Your Business Qualify for ERC Credit?

The Employee Retention Credit (ERC) program was created to help businesses recover from the economic impact of COVID-19. Under this program, businesses like yours can claim thousands of dollars per employee if they qualify.

But like everything associated with the IRS, the Employee Retention Credit (ERC) can be confusing, and difficult to manage. If you’re wondering whether you should apply for ERC credits, consider these things:

PPP and ERC: PPP loans are NOT a disqualification!

Even if you received funds from both PPP draws, you can still qualify for the ERC program. As of 2021, eligibility for this program is not affected by PPP loans that your business received – or even had forgiven!

However, reporting your PPP loans in a way that helps maximize your ERC credits takes some expertise. Working with an ERC partner, like the experts at MP, can help you minimize your effort while maximizing your funds.

You can still file ERC claims for 2020 and 2021!

Businesses file ERC claims quarterly, with their regular payroll taxes. But you can file a claim up to three years after the filing date for that quarter! Even if you have filed payroll taxes for four quarters in 2020, or the first three in 2021 without applying for ERC funds, there is still time! You can submit an amended 941-x form for up to three years: as long as the $80 billion dedicated to the ERC program by the federal government holds out.

There are many ways to define ‘COVID impact’ to determine ERC eligibility!

Your business may be considered to have experienced a negative impact from COVID even if only some locations or lines of business were subject to suspended operations, reduced capacity, restricted hours, or social distancing and sanitation requirements that impacted revenue.

Many businesses were affected in a variety of ways over the course of the pandemic. For example, a restaurant may have had a location shut down in one quarter, and re-opened but with restricted hours in another quarter. You can claim ERC credits for different reasons in different quarters – there does not have to be a single, consistent source of impact over the duration of the pandemic.

Working with a partner for Employee Retention Credit help can minimize your efforts and maximize returns!

If you were an IRS expert, you’d be running a different kind of business. Why not let an expert in the ERC manage your qualification, application and submission? At MP, we can get you started with a 15-minute consultation to learn more about the impact the pandemic has had on your business. After that, MP will manage the ERC process for you, so you can get on with running your business.

Success-based: Our fee is a percentage of the funds you receive through the program.

Risk-free: You won’t be invoiced for MP services until after you receive your credit.

Audit-protected: MP’s process helps ensure that your submission is accurate and defensible in any future audits.

Call MP today! It could be the most valuable 15 minutes of your day.