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Frequently Asked Questions

Get prompt responses from a friendly, professional and knowledgable support team.

Do I have to repay the ERC?

No this is not a loan at all. This is a tax credit that is refundable. When we send in your ERC claim, we request that the refund check be sent directly to you.

How much do you charge?

Our costs are calculated based on the credits we will earn for you. Our free analysis can provide an estimate of how much you can expect to pay.

Why would I hire City ERC and not my CPA?

You can absolutely hire your CPA; however, the ERC is generally claimed on your payroll tax returns and not on your business tax returns. Most CPAs work with business tax returns. Because of this, most CPAs will generally not process this contract unless payroll is completed in-house. We at City ERC bridge the gap in utilizing this valuable tax credit. Most of our clients are referred from their CPA because of the ease of a streamlined partnership and value to the clients’ businesses.

At City ERC, we have decades of experience with payroll, which lets us focus on learning about and making the most of the ERC program for our clients. We have found that clients express difficulty navigating the ERC program, which is where we step in to step up for our clients. In this way, we are able to make the best use of the tax credit program to help your growing business.

Can I benefit from the ERC program if I already have PPP Loans?

Yes. The Taxpayer Certainty and Disaster Tax Relief (TCDTR) Act of 2020 changed the rules for the ERC. One of the changes was to make it possible for a company to have PPP Loans and still use the ERC. It stated that a business cannot use the same dollar for dollar funds for payroll because that would be considered “double dipping.” When we process your ERC, we account for this.

My revenue increased in 2020; do I still qualify for the ERC program?

Yes! For 2020, there are three ways to qualify: a drop in income or a full or partial closure of your business due to COVID-19. A full or partial closure, per the IRS, states, “A government authority ordered you to close all or part of your business in 2020 or 2021.” This includes, but is not limited to, your operations being limited by business, not being able to travel or hold group meetings. Below are some examples of full and/or partial closures:

Example 1: A restaurant must close or limit the number of people who can dine in (social distancing between tables so every other table must be empty.)

Example 2: A business that relies on in-person customer interactions experiences limitations on the number of customers that can be present at any given time.

Example 3: Because of COVID-19 orders and the cleaning requirements by the state, a business must limit the hours of operations.

Example 4: Delays or bottlenecks in the supply chain causes a business to have difficulty meeting production expectations.

Example 5:Due to COVID-19 rules, a planned business event may have been canceled or limited to the number of attendees. 

I’m a CPA or a payroll company, can I refer my clients to City ERC?

Yes, we offer a referral/affiliate program. To learn more, contact us at (929) 259-5214 or at [email protected]

Will ERC run out?

No, this is not a loan program. The US Treasury distributes tax refunds therefore, all eligible employers will receive their credits.

How do I make my payment to City ERC?

We provide two methods of providing payment to City ERC. We understand that you may not receive your tax refund check for a few months.

Why am I receiving more in ERC than I paid in taxes?

Keep in mind, this program is based on payroll taxes paid, not income taxes. If ERC funds are not used for payroll taxes, they are considered an “over deposit” of taxes and the IRS will send a refund check.

As an owner, do my wages and the wages of anyone in my family that I hire count?

This depends on the following criteria:

  • The wages of owners with more than 50% ownership, which is called “Majority Ownership,” do not qualify and neither do the W2 wages of the owner’s immediate family members.

If I am self-employed, can I qualify for ERC?

If you are not a majority owner (50% or more) then you may be eligible.

How long does it take to receive my ERC?

Generally, from the point of complete document submission, an analysis is completed, and the process can take less than 7 business days. Upon eligibility determination, we will discuss your payment options then proceed to file your claim. Once your claim is filed, the refund is issued by the IRS.

Is the ERC taxable?

The ERC is not federal income, but you must subtract the amount of credit from any wage expenses that you deduct for tax purposes. Please notify your CPA once you receive your ERC.

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