While many businesses found themselves suffering significant impacts as a result of the COVID-19 pandemic, many business owners do not realize that they may be eligible for significant tax relief, even if they received funds under the Paycheck Protection Act (“PPP”). The employee retention tax credit (also known as the “ERC” or “ERTC”) is a refundable tax credit for businesses that retained their employees during the COVID-19 pandemic. Businesses are eligible to claim the ERC if either: the business was either fully or partially suspended due to a COVID-19-related government order; or, the business’s gross receipts in a calendar quarter declined by more than 20% compared to the same quarter in the previous year.
The ERC was initially passed as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act in 2020, and provides eligible employers with a credit against certain employment taxes.
For 2020, the ERTC was available for 50% of the wages paid up to $10,000 per employee, capped at $5,000 per employee. For wages paid after January 1, 2021, and before October 1, 2022, the ERTC can be applied to 70% of qualifying wages of up to $10,000 per quarter — a maximum of $21,000 per employee through September 30, 2021.
Qualified wages include wages and health plan expenses paid to eligible employees between March 12, 2020, and December 31, 2021. Eligible employees include those who were retained and paid during a qualifying period, regardless of whether they were actively working or not.
Employers seeking to claim the ERC for 2020 must submit documentation by April 15, 2024. Claimants for 2021 must submit their claims by April 15, 2025.
How Can My Business Claim The ERC?
Claiming the ERC is complex, and many business owners don’t realize they may qualify. Even businesses that remained operational during the pandemic can qualify to claim the ERC if government orders resulted in business interruptions that created even a partial shutdown of operations.
The program is aimed at small businesses that faced significant economic adversity in 2020 and 2021 as a result of the COVID-19 pandemic. The credit can be valuable to employers who are struggling to maintain their workforce, but there are a few prerequisites. In 2020, a business could receive up to $5,000 per employee. By 2021, employers will receive 70 percent of qualified wages paid to employees, up to $28,000 per employee.
What Is The Fastest Way To Claim The ERC?
The ERC can be a valuable way for businesses to recoup pandemic-era losses in profits, secure cash flow for expenses, and provide ready funds for new opportunities. However, IRS processing of ERC claims can often take up to 8-12 months.
However, for businesses seeking to recover their ERC funds on an accelerated timeline, an ERC Bridge loan (also known as an ERC Advance loan or ERC loan) can ensure full or partial funding of an ERC claim within a period of weeks, not months.
Working with a trusted, experienced provider can help to ensure that your ERC claim is error-free, accurate, and processed efficiently. At ERTC Funding, our team of expert analysts work to make sure your claim is complete, backed by exhaustive legal research, and funded on your timeline – we are your partners at every step of the process. Our partnerships can help you to receive up to 90% of your claim as quickly as possible through an ERC Bridge loan, allowing your business the flexibility to fund day-to-day expenses and take advantage of opportunities as they arise.
How Can ERTC Funding Help My Business Process Its ERC Claim Quickly?
ERTC Funding’s team of experts will analyze every aspect of your claim, and ensure that you are receiving the maximum credit you are entitled to. In addition, ERTC Funding can help you to finance your claim quickly, allowing your small business to receive an ERTC Advance or ERTC Bridge loan — you’ll receive up to 90% of your funds within weeks, not months.
An ERTC Advance (also known as an ERTC Bridge or an ERTC Loan) is a short-term loan that is used to make the funds from your pending application for the ERTC available to your business immediately. An ERTC Advance can ensure that your business has the ready cash to operate and thrive, and eliminates the need to wait for government approval of your application.
Through strategic partnerships, ERTC Funding can advance you up to 90% of your anticipated ERC Claim in just 2 weeks.
Are You Ready To Get Started On Your ERC Claim Today?
Claiming the ERC can be quite complicated, and getting your claim wrong can have serious consequences. With nuanced rules to follow, various tests to apply, and thorough analysis needed to make an appropriate and compliant claim, not every ERC firm is equipped to provide the high level of service necessary.
At ERTC Funding, helping you maximize your lawful ERC claim is our mission. Doing so with a compliance-focused, leave-no-stone-unturned approach is what makes the difference between the average ERC services firm and one that cares deeply about doing things the right way in the interest of its clients.
Contact us today to get started!