Frequently Asked Questions
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.
