WE DO THE WORK.
YOU GET THE CREDITS.
ercTree® customers receive multiple quotes from Accounting and Tax Law Firms that the IRS recognizes as specializing in the complex IRS Tax Credit Codes & Corporate Incentives Qualifying Guidelines.
Enjoy our ercTree® 100% Satisfaction Guaranteed FREE Experience. Approved Firms can file as the CPA of Record on your behalf. Approved Firms provide true IRS Audit Defense Protection with each refund filed. Approved Firms carry comprehensive Errors & Omissions Liability Insurance Policies. This greatly reduces the chances of the IRS conducting an audit.
WHAT IS ERC?
DID YOU RECEIVE…
A EIDL Loan or PPP Loan? If you answered YES, to obtaining one or both of these SBA Loans, “Your Business Qualifies for the Payroll Tax Refunds your business paid in 2020 and 2021 for keeping people employed during the Pandemic.”
The Employee Retention Credit
The COVID-19 Pandemic has been a challenge for everyone. As the world shut down the economy came to a halt, leaving the future of many businesses in a precarious position. As we begin to find normalcy again, businesses now have to focus on recovering and fortunately, several government programs are easing this process.
One such program is the Employee Retention Credits or ERC, which is a generous stimulus program designed to bolster those businesses that were able to retain their employees during this challenging time. Due to the complex tax code rules, guidelines and qualifications, it is severely underutilized. Details of the program include:
The Numbers Speak for Themselves
In All 50 States!
WHY ERC TREE
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Gross receipt reduction criteria are different for 2020 and 2021 but are measured against the current quarter as compared to 2019 pre-COVID amounts. REDUCTION IN REVENUE IS NOT REQUIRED TO RECEIVE THE ERC REFUNDS.
Start-up businesses that can show an incorporation date and proper documentation having started-up between February 15, 2020 and December 31, 2021 have much less ERC qualifying criteria than businesses that started operating prior to February 15th, 2020.
The US Government Shutdown and Gross Receipts Reduction rules “DO NOT” apply to Start-Up Businesses during this period of time and can receive up to $50,000.00 Max per qualifying ERC quarter.
Frequently Asked Questions
Once you’ve been prequalified by a referring affiliate and submitted as an ercTree® New Customer you will be contacted by the Document Collection Team within 24 hours. You will have a dedicated support specialist assigned to assist you in document collection and completing the Applicant Questionnaire.
The ercTree® goal is to have all the documents and the application completed within 3 Business days of submission as a new customer.
If you submit all the proper business documents within 3 business days, you will receive multiple quotes within 5 to 10 business days.
Once we receive your quotes, we will schedule a call to review the ERC Refunds, choose a firm and have your business officially filed within 10 to 15 business days.
- Supply chain disruptions
- Inability to access equipment to perform services as normal.
- Time taken away from shifts to clean/sanitize.
- Time to wear PPE.
- Federal, state or local mandates require your business to fully or partially shut down.
- Limitations on the number of people you could have in a room or building.
- Inability to attend normal networking events.
- Disruptions to your sales force’s ability to function normally.
- Limited capacity to operate.
- Inability to work with vendors.
- Reduction to the services or goods offered to customers.
- Reduction to the hours of operations
- Shifting hours of operations to increase facility sanitation.
- Delayed or canceled projects due to Covid related disruptions
No, the employee retention credit is a fully refundable tax credit for employers, and it does not need to be paid back.
The ERC is a permanent refund for you to keep, unlike the PPP Loan that you may have had to file for forgiveness.
ERC CALCULATION FOR 2020:
- The 2020 credit is computed at a rate of 50% of qualified wages paid, up to $10,000 per eligible employee in
wages and healthcare, for the year.
- For 2020, there is a maximum credit of $5,000 per eligible employee, per year.
- For eligible employers with less than 100 average full-time employees in 2019, the credit is available for all
employees receiving wages in 2020.
EXAMPLE OF 2020 EMPLOYEE RETENTION CREDIT:
You pay Stacy $8,000 in wages and healthcare in Q2, $6,000 in Q3, and $6,000 in Q4 of 2020.
Your credit amount for Stacy is $4,000 in Q2, $1,000 in Q3, and $0 in Q4.
Once you hit the $5,000 cap, any additional wages you pay Stacy in 2020 will not increase your credit amount.
ERC CALCULATION FOR 2021:
- The 2021 credit is computed at a rate of 70% of qualified wages paid, up to $10,000 per eligible employee in
wages and healthcare, per quarter.
- For 2021, there is a maximum credit of $7,000 per eligible employee, per quarter.
- The maximum credit for 2021 is $21,000 per employee for the first 3 quarters of the year.
- For Eligible Employers with less than 500 average full-time employees in 2019, the credit is available for all
employees receiving wages in 2021.
EXAMPLE OF 2021 EMPLOYEE RETENTION CREDIT:
You pay Steve $8,000 in Q1, $10,000 in Q2, $12,000 in Q3 and $12,000 in Q4 of 2021.
The credit amount available for Steve is $5,600 for Q1, $7,000 for Q2, $7,000 for Q3, and $0 for Q4.
The tax credit amount is capped at $7,000 per quarter, and the 4th quarter wages do not qualify for the credit.
THIS IS THE MOST COMMON INACCURATE STATEMENT BEING MADE BY LOCAL ACCOUNTANTS. Having a reduction in gross receipts/revenue in 2020 and/or 2021 qualifying quarters versus 2019 equivalent quarters does not disqualify your business from obtaining the payroll tax and if applicable group health premiums you paid.
The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, modified the ERC qualifying guidelines.
IRS examples of the modifications allowing businesses that do not meet the reduction in gross receipts rules are:
Example 1: A restaurant must close or limit its on-site dining. Such as having to close down every other table, due to COVID-19 restrictions.
Example 2: A business that needs to meet with clients in person and has to cancel meetings due to COVID-19 restrictions.
Example 3: A business has to reduce their operating hours because COVID-19 restrictions and cleaning requirements.
Example 4: A business had delayed production timelines caused by supply chain disruptions.
Example 5: A business with a planned events/meetings had to cancel that event/meeting, or restrict the amount of people who can attend due to COVID-19 restrictions.
Reference IRS New Law Extends Covid Tax Credit for Small Business Employers:
Yes. A business can claim the Employee Retention Credit (ERC) until April 15, 2024 for 2020 ERC claims, and April 15,
2025 for 2021 ERC claims.
The Payroll Tax Credit is determined by one of the following criteria — and one of these factors must apply in the calendar quarter the employer wants to utilize the credit:
- The business operations were fully or partially suspended or had to reduce business hours due to orders from a government mandate.
- Suffer a significant decline in quarterly gross revenue as measured against 2019.
– 50% decline for 2020 compared to 2019
– 20% decline for 2021 compared to 2019
- Recovery Startup Business – 3rd and 4th quarter 2021 only.
– Have begun carrying on trade or business after Feb. 15, 2020
– Have annual gross receipts that do not exceed $1 million
– Not be eligible for the ERTC under the other two categories
The date ranges considered for determining eligible wages under the employee retention credit:
- March 13, 2020 – December 31, 2020 – CARES Act
- January 1, 2021 – June 30, 2021 – Consolidated Appropriations Act
- July 1, 2021 – September 30, 2021 – American Rescue Plan Act
- July 1, 2021 – December 31, 2021 – Recovery Startup Business
We have successfully helped hundreds of small businesses claim the ERC from our ercTree Approved Firms, obtaining millions of dollars in tax credits. Our services are 100% free to you as we help you find out if you qualify and assist with the management of your documents for the tax credit process with you. We have taken the guesswork out of a very important decision for small business owners.
Choosing the right firm to underwrite and file the Employee Retention Credits (ERC) on your behalf is essential in maximizing the amount of your return. ercTree has diligently vetted several dozens of online companies claiming to be Tax Credit Firms. WE have partnered with the BEST Accounting and Tax Law Firms specializing in Internal Revenue Code (IRC) Tax Credits for small businesses.
Let us provide a complimentary analysis of your organization to determine if the ERC credits can be claimed with the ercTree Approved Firms. This includes a comprehensive ERTC study:
- Determination if the employer qualifies, and determination of which employee wages qualify; And if so, for which fiscal quarters.
- Detailed summary and supporting evidence of the client’s business to identify partially or fully suspended
conditions due to COVID-related government orders.
- Preparation of documentation supporting ERTC eligibility claims.
- Preparation of reconciled data for IRS Form 941-X;
- Completion of all federal tax forms and additional supporting documentation, as required.
- Removing unqualified employees, such as certain business owners;
- Reviewing and adding allocable qualified health plan expenses;
- Checking to see if the business qualifies for any additional tax credits in addition to the ERTC.
- Providing detailed filing instructions as well as audit support.
Yes. The majority of the referrals we receive are from Local Accountants, Investment Bankers, Attorney’s, Bankers and Payroll Service Providers across the country, wanting the best for their clients. The smart day-to-day accountants know to stick to their expertise and realize that they are not experts in the complex business tax credits and incentives space. We offer a referral program. To learn more contact us.
The ercTree® approved firms charge their fees based on a percentage of the total ERC refund recovered. ercTree® does not inflate the fees and do not charge you for our services.
The fees of ercTree® approved firms varies between 5% to 20% of the total refund, depending on the ERC filing option chosen by you.
The ercTree® approved firms all specialize in filing the complex IRS Tax Credits for Manufactures, Fortune 500 Employers and Small Businesses that qualify for R&D, Energy and all Government Tax Credit Programs.
Typically, compared to an local area accountant or online pop up firm, ercTree® approved firms are able to recover 30% to 50% more in ERC Refunds.
ercTree® approved firms are each required to provide you a complementary/free underwriting analysis and ERC refund quote.
If you choose to have your local CPA provide you a ERC Refund quote, that is fine by ercTree®. Just be smart and allow the ercTree® approved Firms to also provide ERC Refund quotes and compare.
Current Expectations to when you should receive the checks from the US Treasury:
– Quarterly Refunds <$200K are taking approximately 90 days
– Quarterly Refunds $200K to <$500K are taking approximately 90 to 150 days
– Quarterly Refunds >$500K are taking approximately 6 to 9 months
Reference IRS Delays in ERC Refund Payments:
The ERTC may or may not be taxable. The ERTC will affect what payroll deductions you can claim. Businesses that receive the ERC must reduce their payroll expense deduction by the amount of the credit.
Your ERC Refunds will be accurately calculated by CPA’s and Tax Attorney’s that specialize in Tax Credits.
Depends. Owners who possess 50% or more majority ownership do not qualify to include their wages in the ERC refund calculation. The same exclusion applies to the W2 wages of immediate family members who also have 50% or greater ownership in the business. However, if the owners have less than 50% ownership, their W2 wages are eligible for the ERC refund calculation, along with the W2 wages of immediate family members.
No, if your majority owner (over 50%) your wages do not qualify. But if you employed one employee, then you may qualify for the ERC on wages paid to that employee. Contract 1099 employees do not qualify.
Yes! Startup Businesses that incorporated after February 15, 2020. Eligible wages extended through December 31, 2021, and your average annual gross receipts are under $1 million. Your total credit is limited to $50,000 per calendar quarter.
ercTree® provides ERC Credit Advance Funding options, allowing you to obtain up to on average 85% of the filed ERC Refunds within weeks of officially filing.