The Employee Retention Credit is a CARES ACT program created for businesses that were negatively affected by COVID-19 Government Orders.
• If you qualify, the IRS will refund up to $26,000 Per Employee
• The refund is yours to use as you wish!
• Companies that were negatively impacted by events during the period from March 13, 2020 - December 31, 2021 may be eligible.
• Contact American ERC for a free evaluation of your eligibility to participate in this free Federally sponsored program.
American ERC is exclusively dedicated to maximizing the CARES Act Employee Retention Credit (ERC) for businesses affected by COVID-19 Government Orders.
American ERC specializes in helping businesses obtain the “Employee Retention Credit”, a COVID program that can provide cash (not a tax credit) to businesses that had employees in 2020 or 2021.
The ERC is similar to the PPP, however, there are no restrictions on the use of funds (they can be used for anything), and it is not a loan, but a credit, that comes in the form of a rebate check from the IRS.
To qualify, the business must either 1) have lower gross receipts in 2020 and/or 2021 compared to 2019 or 2) have been more than nomially affected by COVID-19 Government Orders.
If a business qualifies, it can receive up to $26k per employee!
There are no up-front fees. American ERC's success fee is due after the ERC is collected.
The ERC can be a terrific benefit to any employer with W-2 employees.
Please contact American ERC to see if you qualify.
Please reach us at Admin@AmericanERC.com if you cannot find an answer to your question.
• Yes. American ERC fully evaluates the circumstances that affected your business in the qualifying time period to assure that you are able to take full advantage of all applicable credits from the program.
• Examples of qualifying circumstances:
• Cancelled meetings
• Cancelled events
• Reduced operating hours
• Reduced service to customers
• Supply Chain issues
• Distribution issues
• To get the maximum refund from the Employee Retention Credit program, companies must apply before the program ends, which is three years from your tax filing date. Waiting to apply may reduce your total refund.
• Since this is a tax refund, all eligible employers will receive the funds.
• Yes. Because this program refunds payroll taxes paid, (not income taxes), ERC funds not applied towards owed payroll taxes are treated as an ‘overdeposit’ of taxes that will be requested by American ERC for you as a refund check from the IRS.
• Once American ERC receives the required documents, we complete an analysis at no charge. The analysis is typically completed within 2-3 business days.
• Upon your approval, the application to the IRS is filed within 24 hours.
• Once filed, refunds are released based on IRS backlog. Currently, the IRS has stipulated a 24 week minimum turnaround on the ERC refunds.
• Wages of owners may qualify in some circumstances. Contact American ERC for details
• No. This is not a loan. It’s a refundable tax credit. When American ERC files your ERC claim with the IRS, we request a refund check from the IRS for you.
• American ERC specializes in the Employee Retention Credit Program and provides a depth of knowledge and experience to streamline the application process and access the full benefits of the program for our clients. Many CPAs refer their clients directly to American ERC.
• Our service charge is based on a percentage of the credit recovered. We calculate and provide our fee with our free analysis.
• Payment is made directly to American ERC once you receive your refund from the IRS.
• No. An employer receiving a tax credit for qualified wages, including allocable qualified health plan expenses, does not include the credit in gross income for federal income tax purposes. Neither the portion of the credit that reduces the employer's applicable employment taxes, nor the refundable portion of the credit, is included in the employer's gross income.
• Yes. Section 2301(e) of the CARES Act provides that rules similar to section 280C(a) of the Internal Revenue Code (the "Code") shall apply for purposes of applying the Employee Retention Credit. Section 280C(a) of the Code generally disallows a deduction for the portion of wages paid equal to the sum of certain credits determined for the taxable year. Accordingly, a similar deduction disallowance would apply under the Employee Retention Credit, such that an employer's aggregate deductions would be reduced by the amount of the credit as result of this disallowance rule.
* Form 941 for each Quarter of 2019, 2020 & 2021 (12 documents).
* Employee Payroll Summary for each pay period in 2020 and 2021 including Pay Date, Name, and Gross Pay.
* Quarterly revenue for 2019, 2020, and 2021.
* If the company received PPP assistance, provide Form 3508 for 2020 and/or 2021.
* Provide a detailed explanation of how your business was modified due to COVID-19 government orders. Be specific as to measures implemented and dates covered (2020 Q2, Q3, Q4, 2021 Q1, Q2, Q3).
* Owner Information: List Owner Names, Ownership Percentage, and any Other Companies Owned.
* List of Employees Related to any Owner (spouse, parents, children, cousins, in-laws, etc.).