Deadline to Qualify is Approaching!
ERC Basics
What it is: Economic Stimulus Payment
First introduced in CARES Act on March 25, 2020
2020: 50% wages, max of $5,000 per employee
2021: 70% wages, max $21,000 per employee
$7,000 - Q1, Q2, Q3
Fully refundable tax credit against employer portion of social security
Paid to you directly via check
Available to for-profit and not-for-profit
Claim by filling amended 941-X quarterly returns taking the ERC credit on Line 18 & 26
ERC Basics: What it is NOT
ERC is NOT a credit your CPA claims on your annual tax return and our CPA FIRMs work on this credit/ refund check will not interfere with your CPA's traditional tax work.
ERC is NOT a loan and does not need to be repaid or "forgiven" like a PPP.
ERC does NOT impact your PPP forgiveness or eligibility for PPP-2.
ERC does NOT require a revenue reduction.
MISCONCEPTIONS ABOUT ERC
Most Common Misconceptions About ERC
"I do not qualify because my business"
- Did not have a revenue decline.
- Did better during COVID.
- Did not shut down.
- I cannot get this because I also have a PPP.
- My CPA will claim this credit on my annual tax return.
- I am an 'Essential business' so I do not qualify.
- My employees continued to work so I do not qualify.
- My business operations were not suspended.
- I had a net operating loss, so this doesn't apply to me.
While these are factors in the process, these do NOT disqualify you.
