Created by the CARES Act of March 2020, the ERC encourages businesses to keep employees on payroll.
We specialize in Maximizing ERC Funding for Small Businesses.
Before March 2021, when the revised laws of the IRS were made available, the ERC was rarely used. In other words, by updating their quarterly 941 payroll filings, thousands of companies that previously had to choose between the ERC and the Paycheck Protection Program (PPP) can potentially now take advantage of both stimulus programs.
We look at your claim in every way possible to make sure you get the most tax credits
Our simplified process enables quicker results, which translates to you receiving your tax credits faster
Our dedicated support members are here to help with any questions you may have along the way
Although the basic requirements for the ERC program appear straightforward, there are many ways to interpret each requirement. Our extensive knowledge enables us to guarantee that we make the most of any credits that could be available to your business.
Your company must have been completely or partially shut down in 2020 or 2021 per a government order. This includes having your business operations restricted, inability to travel, or not being able to have group gatherings.
Gross receipt reduction requirements vary when comparing 2020/2021 quarters to pre-pandemic 2019 quarters.
The inability to obtain supplies that are crucial to business operations that resulted in a 10% or more decrease in gross revenue for the qualified quarters affected.
See why our clients love using us to get the most out of their tax credits
Chris and the rest of the City ERC team worked hard and paid attention to detail as they walked us through the process of applying for and getting ERC, even though our business had already gotten a PPP loan that had been forgiven. He and his team were able to put together accurate paperwork that was ready to send to the IRS within a few days.
It was easy to work with Rich and everything went just as he said it would. They processed my forms very quickly and were always available to answer any questions I had along the way. Soon after, the IRS sent us our check in the mail. I couldn’t be happier with how well City ERC has done.
Get prompt responses from a friendly, professional and knowledgable support team.
No. This is not a loan. It’s a refundable tax credit. When we file your ERC claim we request a refund check for you.
Our service charge is based on a percentage of the credit recovered. We calculate and provide our fee with our free analysis. Since we are typically able to recover 10-20% more than someone less familiar with the program, our fee is very affordable. Just like a good CPA, using the right team for this process pays for itself.
Of course. The challenge is the ERC credit is taken on your payroll returns and not through your business income tax returns, which is what most CPA’s handle. Because of this most CPA’s don’t process this credit, unless they process your payroll in house. This is also a big reason why this credit is so underutilized. Since CPA’s don’t typically handle it and they are the tax experts, it has mostly fallen in a middle ground where few are able to effectively process the credit. Interestingly, we receive a large portion of our clients from CPA’s.
At ERC Specialists we have decades of payroll experience, which has allowed us to specifically focus to understanding and maximizing the ERC program. In our experience we have found that due to the complexity (the ERC tax code is over 200 pages) and time investment necessary to understand the ERC program, very few are able to effectively maximize this sizeable credit for your business.
Yes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, modified the ERC credit rules. One of the modifications included allowing a company to have a PPP loan and still take advantage of the ERC credit. However, you can’t use the same dollar for dollar funds. We take this into account when processing your ERC credit.
Yes! There are two possible qualifications for 2020: revenue reduction, or a “full or partial shutdown of your business due to COVID-19”. Specifically the IRS describes this as “A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.” Below are several examples of qualifying events:
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 event has to cancel that event, or restrict the amount of people who can attend due to COVID-19 restrictions.
Yes. We also offer a referral/affiliate program. To learn more contact us.
This is not a lending program – tax refunds are issued by the US Treasury. Therefore, all eligible employers will receive the funds.
We understand your refund check may not arrive for several months (20 weeks minimum according to IRS documentation), so we offer two payment options – you may pay your fee upfront at a discount – or – the full fee can be deducted from your refund once received. Upfront payments can be completed by credit card. Regardless our fee is covered by our 100% Money Back Guarantee. If the IRS does not release the credit claimed for any reason, we will refund any payments made.
Remember that this program is taken according to payroll taxes paid, not on income taxes. ERC funds not applied towards owed payroll taxes are treated as an ‘overdeposit’ of taxes that will be requested as a refund check from the IRS.
Maybe. Wages of owners who have majority ownership, defined as over 50%, do not qualify, nor do the W2 wages of any immediate family members of the owner. In the case an owner has less than 50% ownership, their W2 wages qualify, as do the W2 wages paid to immediate family members.
No, if you are majority owner (over 50%) of your company then your wages do not qualify.
This is how the process works: you send us the required documents and we process an analysis at no charge. The process from start to finish usually happens in 2-3 weeks. If you wish to move forward, you will select your desired payment option and we file your claim. Once filed, refunds are released based on IRS backlog. Currently, the IRS has stipulated a 20 week minimum turnaround on the ERC refunds.
The ERC credit is not considered income for federal income tax purposes, but you must reduce any deductible wage expenses by the amount of the credit. Please provide the credit information to your CPA for tax purposes.
Still Have a Question? Reach out to us here.