There's a lot of lies flying out around there about ERC...
I decided to put together a quick list of the common misconceptions & their
truths.
Hope This Helps!
MYTH: A business that has already received Paycheck Protection Program (PPP)
loans or had its PPP Loans forgiven, cannot claim ERC.
TRUTH: Businesses can utilize both programs! This limitation was
removed in the Consolidated Appropriations Act (CAA) of 2021.
MYTH: A business did not have a drop in gross receipts of 50% or more and is therefore not eligible for ERC.
TRUTH: The (CAA) reduced the qualification from 50% to 20% for
the first three quarters of 2021.
MYTH: A business did not shut down during the pandemic, so it is
not eligible for ERC.
TRUTH: A business impacted by a partial shutdown, disruption to
supply chain, vendor, or business operations, limited hours and capacity or had
restricted access to equipment or experienced a significant decline in revenue,
may still qualify for ERC.
MYTH: A business was deemed essential, so it does not qualify.
TRUTH: A business that experienced an impact or change to
operations or a decline in revenue may still qualify for ERC.
MYTH: A business must have fewer than 500 employees in order to
be eligible for ERC.
TRUTH: A business’s employee count restriction is based on
full-time equivalent (FTE) employees, rather than everyone in the workplace.
MYTH: A business had increased sales during the pandemic, so the
business is not eligible for ERC.
TRUTH: Although a business has grown, it may still be eligible
if it was impacted by a full or partial suspension of operations due to a
governmental restriction.
MYTH: A business' sales rebounded in Q1 of 2021, so it is not
eligible for ERC.
TRUTH: The (CAA) allows a business to determine its eligibility
based on lost revenue in 2020 quarters or a suspension in operations.
MYTH: A not-for-profit cannot claim ERC.
TRUTH: Non-profit organizations such as non profit hospitals,
churches, museums, etc. are eligible for ERC.
MYTH: The Employment Retention Credit Ended. It’s Too Late to
Take Advantage
TRUTH: As long as the statute of limitations remains open, which
is three years from the date of filing, you can still apply for ERC.
Best,
Doug
Affiliate, iHub Global
PS: If you want to speak with me directly about your ERC refund, book a time here
