Frequently Asked Questions

Fast Track to ERC Filing
FAQ Answering ERC Questions Fast

WHAT IS AN ERC?

An ERC is an Employee Retention Credit, a tax credit that was designed to help businesses keep employees on their payroll during the COVID-19 pandemic as well as reward businesses that started businesses during COVID-19.

IS THE ERC A LOAN?

No, the ERC refund is essentially a cash payment directly from the IRS that does not need to be repaid.

HOW DO I FILE FOR AN ERC REFUND?

Businesses must file an amended employment tax return (Form 941-X), for the relevant quarters to claim the ERC refund.

WHAT ARE THE ERC ELIGIBILITY CRITERIA FOR BUSINESSES STARTED BEFORE COVID-19?

To be eligible to claim the ERC refund, a business, including tax-exempt organizations, must meet specific criteria, including but not limited to operations that were fully or partially suspended due to government mandate or supply chain disruption due to COVID-19 or had a decline in revenue compared to 2019.

Eligible businesses must have had W-2 employees not including the business owner(s) and their family members in their W-2 count. 1099 employees/consultants/contractors do not qualify.

WHAT IF I OPENED A BUSINESS DURING COVID-19?

If a business was started during the COVID crisis after February 15th, 2020, and had W-2 employees (1099 employees/consultants/contractors do not count), they automatically qualify as long as they earned less than $1 Million in revenue their first year in business. Recovery start-up businesses can qualify for the ERTC without a decline in gross receipts, government mandates, or a suspension of operations for the second half of 2021.

ARE THERE ANY OTHER ELIGIBILITY REQUIREMENTS TO CLAIM THE ERC REFUND?

Yes, businesses must prove that they started their business before 2021, paid employees in 2020 and/or 2021, had operations in the United States, and paid W-2 employees (1099 employees/contractors/consultants don’t qualify) that don’t include business owners and their family members in the employee count.

HOW MUCH OF AN ERC REFUND CAN I EXPECT?

The amount of an ERC refund amount depends on, the number of eligible employees, and the qualified wages including other eligible expenses paid during the period, for a maximum payment of $26,000.00 per employee.

Businesses that claimed a PPP loan forgiveness amount that includes wages used to calculate the ERC are not eligible for an ERC refund for those wages.

HOW LONG DOES IT TAKE TO GET AN ERC REFUND?

The processing time for an ERC refund will vary based on the refund amount and volume of requests received by the IRS. It can typically take between 3-15 months to receive a refund payment.

Premium ERC has an ERC funding program to provide your ERC refund in days rather than waiting 3-15 months for the IRS.

ARE THERE ANY RESTRICTIONS ON HOW I SPEND MY ERC REFUND MONEY?

No, there are no restrictions on how to spend your ERC refund money, but the funds must be used for legitimate business expenses.