Understanding the Employee Retention Tax Credit

Understanding the Employee Retention Tax Credit

Did your company or non-profit pay W-2 employees through the pandemic? Then you may be missing out on pandemic relief funding!

Our company has submitted over $200 million to the IRS to put back into business’s pockets.

*This is not a loan like PPP or EIDL

After learning that several business owners in my network had never heard of the ERC tax credit, I took it upon myself to learn more. Unlike the well-known PPP loan program, the ERC funds come directly from the IRS in the form of a refund tax credit.

Why have we all heard about PPP, but not the ERC?
My conclusion is that because large financial institutions benefited from facilitating the PPP loans, they were able to use their large PR machines to publicize the program. ERC is not connected with any banking institutions, it is a tax credit REFUND, that comes directly from the IRS. The IRS is not a marketing agency and quite frankly they are severely understaffed right now. Their role is not to publicize tax credits. Therefore, the ERC funding is not very well known, even among CPAs and payroll companies. In addition, our legislators have made five (5!) amendments to the ERC, so the guidance has changed several times — including the most recent amendments made in December 2021. That being said, it has been challenging to stay up to date on the details of this tax refund.

VISIT and find out if your company (sorry business friends who use 1099s, you must have W-2 employees) qualifies for this tax refund!


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