The 2020 COVID relief bill established the ERC program to incentivize businesses who kept employees on payroll during the pandemic. Originally, companies could participate in either the Paycheck Protection Plan (PPP) or the ERC, but not both.
In early 2021, guidelines changed to permit businesses to claim ERC in addition to PPP funds. Great news for many businesses! “We worked with a lot of business owners to secure funding during the pandemic,” said Andy Pohlman, director of retail sales at First Fed.
“Now we want to help ensure they receive the tax credit they earned by retaining their team members through difficult times.”
Your business could qualify for thousands of dollars per eligible employee. The IRS anticipated over 70% of businesses and non-profits, from a wide range of industries, to be good candidates for the ERC.
Currently, you are eligible to file for a retroactive refund three years from the date of your original qualifying tax filing, thanks to a program extension. For 2020, businesses would have until 2023 to file for the tax refund.
However, government-funded programs are subject to change. Other funds like PPP and Restaurant Revitalization have run out without notice.
“Government-funded programs can offer great benefits but are unpredictable,” said Pohlman. “It’s important to apply early in order to receive the whole amount you qualify for because the program could change without notice.”
A 12-minute qualification survey can determine whether your business is eligible for the tax credit. If eligible, supporting documentation is required to process the application.
First Fed has partnered with Innovation Refunds, a company that specializes in helping businesses, to provide a free ERC analysis of your company. As of 2021, Innovation Refunds has helped over 6,000 businesses receive $450 million in cash incentives from federal and state governments.
There is no cost to find out if you are eligible for the ERC tax refund. Expert CPAs from Innovation Refunds will evaluate your tax credit eligibility by applying their specialized knowledge to the information you provided. An average of 14 hours is invested in the analysis, at no cost to your business. If you are eligible and decide to move ahead, Innovation Refunds will receive a percentage of your tax refund when you receive it.
As of May 2022, the ERC program funds are still available. To see if your business qualifies, visit www.ourfirstfed.com/business/resources/employee-retention-credit and start your application today.
First Fed is a member FDIC and equal housing lender. Learn more at www.ourfirstfed.com
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