Question 1

What is the ERC?

Accepted Answer

ERC is the Employee Retention tax Credit. Through the CARES Act, the ERC was created to help businesses keep employees on payroll by providing a stimulus financial package. Employers who received a Paycheck Protection Program (PPP) loan are still eligible to apply for the ERC. The most a company can receive from the ERC is $26,000 per W2 employee in the form of a grant, but there isn't a limit on how much in total a company can receive. The more employees a business owner had on payroll during the 2020/2021 years, potentially, the more of a refund they can receive.

Question 2

How does the ERC work?

Accepted Answer

ERC Is a tax credit refund for businesses that qualify. To qualify you will need to provide evidence of any negative financial impact or shut-down from the Covid-19 Pandemic economic crisis.

Question 3

Who qualifies for the ERC?

Accepted Answer

To qualify for eligibility, an employer must be able to prove that their business was negatively impacted in one or more of the following ways:

- Your business experienced a partial or total shutdown during 2020 or 2021 including limited business operations.
- Not being able to meet or host meetings
- Restriction to travel
- A gross receipt reduction. Businesses can be eligible for one quarter and not for another.

Question 4

What are some of the benefits from the ERC program?

Accepted Answer

The Employee Retention Credit or ERC is a generous stimulus program designed to bolster businesses that were able to retain their employees during the Covid-19 Pandemic by giving them a refundable tax credit check. Some of these benefits include:

- Up to $26,000 per employee
- No limit on funding (ERC is not a loan)
- Flexible use of funds
- Available for 2020 & Q1-Q3 2021

Question 5

How do you apply for the ERC?

Accepted Answer

Employers must apply for the ERC by completing and filing a 941-X, Adjusted Employer’s Quarterly Federal Tax Return, or Claim for a Refund with their quarterly tax return. We recommend contacting one of our team members for more details on your eligibility and how to file.

You can apply with us HERE.

Question 6

Can I claim the ERC and PPP?

Accepted Answer

As of now, yes. Due to the passing of the Consolidated Appropriations Act (CAA), businesses can now apply for the ERC despite already applying for the PPP loan, as long as they met the eligibility requirements. It is important to note that employers cannot claim payroll expense as both an ERC wage and a PPP.

Question 7

What are qualified wages for the ERC?

Accepted Answer

For businesses that have experienced a significant decline in gross receipts or any shutdown due to COVID-19, all wages paid to employees are considered qualified wages.

Question 8

Do I have to pay back the ERC?

Accepted Answer

Nope!

The ERC is reimbursement made through employer credits. Consider it the government paying you money they owe you. As you endured through the hardships of the pandemic, the government is offering these credits to help alleviate the results.

Question 9

How much does it cost to file for the ERC?

Accepted Answer

At Upper Partners, we do not get paid until we  successfully get your ERC returns on their way! Once it is submitted and confirmed from the IRS, a 15% compensation will be issued.

Frequently asked questions