Frequently Asked Questions

Find answers to frequently asked questions about the Employee Retention Tax Credit.

Our team has carefully sorted through IRS materials to find the most useful ERTC information. Our industry experts are glad to share their expertise, but we hope you feel just as confident in your knowledge as we do. Browse through our FAQs for more information on the ins and outs of the program.

Is this real? How do I know this isn’t a scam? It seems too good to be true.

We understand opportunities like this may sound too good to be true, but rest assured—it is real! Take a look at the official IRS website to confirm.

Can I qualify if I took PPP 1 and PPP 2?

The PPP differs significantly from the ERC. The ERC is a "tax credit," and if your ERC exceeds the amount payable, it is considered an overpayment and is refundable to you in the form of a cash payout from the IRS.

There are no monetary limits on how much money a firm can get, and there are no restrictions on how the money must be used! If you received a PPP loan, you may still be eligible for the ERC credit. Please fill out the our form and we can determine if you’re eligible

What would make my business ineligible?

The only types of businesses that are not eligible to claim the CARES Act and employee retention credits are federal, state, and local government institutions. Self-employed people are also ineligible for assistance, although there are a few exceptions that may allow you to qualify.

Tribal governments may also qualify. As you go through the application process, you'll soon understand what you're eligible for and how our experts can help you. If you did not retain employees during the COVID pandemic, unfortunately you would not be eligible for this credit because it is based on employee retention.

If you're still unclear whether you and your company qualify, start getting your documentation together. The only way to find out if you are eligible is to apply. 

Does my payroll system or CPA have this information?

A LOT of our clients tell us that their CPA told them they didn’t qualify. From our experience, over half of them actually do. The ERC is dealing with a variety of challenges, such as controlled group criteria, verification of qualifying methods, engagement with PPP loans, and allocating healthcare expenses to appropriate time periods, among others.
Your payroll company may not have all of this information, and your CPA may not have the specific knowledge to inquire about it, so having a specialist perform these calculations would cover the risk of miscalculations or under-calculations and significantly reduce the risk of filing errors.
ERCO and our partners process hundreds of applications a week and have well-trained CPAs and accountants on staff who know the complex rules, perform the calculations, and complete the paperwork, turnkey! Allow our specialists to make a huge difference in your journey and prevent you from leaving money on the table.

Is there a deadline to apply?

While the eligibility period expired Q3 2021, the IRS will begin phasing out the ERC application process in Q2 2023, so it is imperative that you apply as soon as possible so that you can claim your credit. The preliminary research to assess your eligibility and estimate your credit is entirely free, so there’s no risk! What’s more, we are the ONLY ERC processor that offers advance funding!

Are ERC and ERTC interchangeable?

Yes. ERC stands for "Employee Retention Credit," and ERTC stands for "Employee Retention Tax Credit." The Coronavirus Aid and Relief Act established this program in 2020 to assist businesses in keeping staff on their payroll. Employee Retention Tax Credits (ERTC) and Employee Retention Credits (ERC) are both tax credits that are refundable.

What is the ERC's definition of “partially suspended operations”?

If an appropriate governmental authority sets limits on business activities by limiting commerce, travel, or group meetings, the operation of a trade or business may be partially suspended (for commercial, social, religious, or other purposes). This might be a "stay-at-home order" for non-essential firms, a capacity constraint, or anything along these lines.

Can I still apply for ERC in 2023?

Qualifying businesses can claim the employee retention tax credit (ERTC) for the last three quarters of 2020 and the first three quarters of 2021. The employer's second-quarter 2020 tax return was due on July 31, 2020. This means you have until July 31, 2023, to modify these returns and get a refund.

On October 31, 2021, the payroll tax return for the third quarter of 2021 was due. That means you have until October 31, 2024, to make changes to your return and receive a refund.

In short, there is still time to claim the ERTC tax credit in 2023, but you must move quickly to avoid missing the deadline.

I’m a tax-exempt employer. Do I qualify?

Even if you do not pay taxes, you may be eligible for assistance. Because the ERC's goal is to keep people employed, your company's tax pledge does not exclude you from claiming. If the COVID-19 epidemic has had a financial impact on your company, you are almost certainly eligible for assistance.

Can a closed business apply for ERC?

Yes, closed businesses can apply for the Employee Retention Credit (ERC).

The IRS has extended ERC assistance into 2024. Because there is so much uncertainty about the pandemic's long- and short-term implications, you can provide security to your employees by applying right away.

As small business owners you are extremely busy -- however this credit won’t be available much longer! Minutes of work could be worth hundreds of thousands of dollars in refundable credits or much more!