Employee Retention Credit (ERC)
The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. More information about the ERC, and qualification requirements, can be found here.
We are providing services related to the ERC and can help guide you through the process. If you are interested in claiming this credit, please schedule your ERC appointment below.
We have partnered with a company called ERCPro's in order to provide our clients with this service. Submitting ERC applications to the IRS is the only service that ERCPro's provides, and they are proven experts in this area. Due to the pandemic, the ERC is a new area of exploration and we want to ensure that we have knowledgeable, prompt, and well-organized representatives on our side as we assist you through this process.
Here's how we do it:
1. We collect the necessary information to submit to ERCPro's. This includes:
Profit and Loss: Jan 1, 2019 – Dec 31, 2021, by quarter or month.
Payroll From 941’s: Q2 2020 – Q4 2021
Payroll Detail Report: March 1, 2020 – December 31, 2021
PPP Forgiveness Documents. If you have applied for forgiveness on your PPP Loans, please include a copy of your forgiveness application.
Health Insurance: March 1, 2020, to December 31, 2021 total health insurance premiums, by employee, by month.
IMPORTANT QUESTIONNAIRE: https://form.jotform.com/travisslade/ercpros
*Please note, if you do not have QuickBooks Online or QuickBooks Desktop records for these years, it may take us longer to process this documentation.
2. ERCPro's determines your business's eligibility, and calculates the amount of the credit. Businesses can be eligible by:
Being affected by a governmental order that reduces their operations by at least 10%,
Suffering a loss of revenue of 50% in 2020 or 20% in 2021 when compared to 2019's respective quarterly revenue, or
Opening a new business after February 15th, 2020, and had less than $1 million in gross revenue.
3. Once they are finished processing the application, they will send it to us to forward to you for signature via email in DocuSign.
4. At this point, you may choose to compensate ERCPro's 12.5% of the credit amount up front or 15% of the credit amount upon receipt of the refund. This fee is for their labor, processing, and expertise in the submission of the application. MAPC also receives a portion of the fee paid to ERCPro's for assisting with submission of the documentation. If there is a significant amount of work needed to produce, reformat, or otherwise obtain or process the documentation, MAPC may charge an additional fee to cover the cost of performing this work.
* Please note, refunds may take up to 10 months to receive. The IRS will prioritize applications with more employees, but it is still worth it for companies with just one employee to apply.
We recognize that COVID was a difficult time for so many people across the globe, and as such, we are still navigating the waters regarding the ERC. However, we believe it is worth it to try to receive any tax rebate that is made available to you. The application process is of no cost or risk to the client, and comes with the opportunity to recover payroll taxes that are otherwise unrecoverable. We hope it will provide relief to the many small businesses and nonprofits we serve on a daily basis.
Rosanna Montgomery, CPA, MBA