What is the Employee Retention Credit?

Watch this video of industry experts to  learn more about ERC and how your business can benefit.

Read the IRS news release

How much can I receive?

Understanding the ERC

The Employee Retention Credit or ERC is a generous stimulus program designed to bolster businesses that were able to retain their employees during the Covid-19 Pandemic by giving them a refundable tax credit check. Some of the benefits from this program include:

  • Up to $26,000 per employee
  • No limit on funding (ERC is not a loan)
  • Flexible use of funds
  • Available for 2020 & Q1-Q3 2021
Find out if you are eligible

Am I eligible?

You may be if you were impacted by any of the following:

Covid-related Restrictions

Reduction in Revenue

Supply Chain Disruptors

Find out if you are eligible

ERC logo in white

While the general qualifications for the ERC program seem simple, the interpretation of each qualification is very complex. We’re a specialty tax company exclusively dedicated to understanding and maximizing the Employee Retention Credit (ERC) for businesses affected by COVID 19.

  • Full or Partial Suspension of Business Operations

    A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel, or restrictions of group meetings.

  • Gross Receipts Reduction

    Gross receipt reduction criteria are different for 2020 and 2021 but are measured against the current quarter as compared to 2019 pre-COVID amounts.

Learn More

Why go with ERC Zone

Getting you the biggest funding check.

All we do is ERC

Our team strictly focuses on ERC allowing us to be the experts and resulting in more funding for your business.

Get the return you deserve

We evaluate your claim to ensure we get your credit correct.

Help every step of the way

All your  questions will be answered with a dedicated team of ERC support specialists.

File lightning fast

Our streamlined processes allow for faster results, which means you get your check faster.

Maximum Funding

We evaluate your claim in every way possible to ensure we maximize your credit.

Dedicated to ERC

No need to be the guinea pig for your CPA. We average 10-20% more funding than a CPA not familiar with the program.

Lets get started

Frequently Asked Questions

No. This is not a loan. It's a refundable tax credit. When we file your ERC claim we request a refund check for you.

Our service charge is based on a percentage of the credit recovered. We calculate and provide our fee with our free analysis. Just like a good CPA, using the right team for this process pays for itself.

Of course. The challenge is the ERC credit is taken on your payroll returns and not through your business income tax returns, which is what most CPA's handle. Because of this most CPA's don't process this credit, unless they process your payroll in house. This is also a big reason why this credit is so underutilized. Since CPA's don't typically handle it and they are the tax experts, it has mostly fallen in a middle ground where few are able to effectively process the credit. Interestingly, we receive a large portion of our clients from CPA's.

At ERC Zone we have decades of payroll experience, which has allowed us to specifically focus to understanding and maximizing the ERC program. In our experience we have found that due to the complexity (the ERC tax code is over 200 pages) and time investment necessary to understand the ERC program, very few are able to effectively maximize this sizeable credit for your business.

Yes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, modified the ERC credit rules. One of the modifications included allowing a company to have a PPP loan and still take advantage of the ERC credit. However, you can't use the same dollar for dollar funds. We take this into account when processing your ERC credit.

Yes! There are two possible qualifications for 2020: revenue reduction, or a "full or partial shutdown of your business due to COVID-19". Specifically the IRS describes this as "A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings." Below are several examples of events indicating eligibility:

Example 1: A restaurant must close or limit its on-site dining. Such as having to close down every other table, due to COVID-19 restrictions.

Example 2: A business that needs to meet with clients in person and has to cancel meetings due to COVID-19 restrictions.

Example 3: A business has to reduce their operating hours because COVID-19 restrictions and cleaning requirements.

Example 4: A business had delayed production timelines caused by supply chain disruptions.

Example 5: A business with a planned event has to cancel that event, or restrict the amount of people who can attend due to COVID-19 restrictions.

Yes. We also offer a referral/affiliate program. To learn more contact us.

This is not a lending program - tax refunds are issued by the US Treasury. Therefore, all eligible employers will receive the funds.

We understand your refund check may not arrive for several months (20 weeks minimum according to IRS documentation). Regardless, our fee is covered by our 100% Money Back Guarantee. If the IRS does not release the credit claimed for any reason, we will refund any payments made.

Remember that this program is taken according to payroll taxes paid, not on income taxes. ERC funds not applied towards owed payroll taxes are treated as an 'overdeposit' of taxes that will be requested as a refund check from the IRS.

Maybe. Wages of owners who have majority ownership, defined as over 50%, are not eligible, nor are the W2 wages of any immediate family members of the owner. In the case an owner has less than 50% ownership, their W2 wages are eligible, as are the W2 wages paid to immediate family members.

No, if you are majority owner (over 50%) of your company then your wages are not eligible.

This is how the process works: you send us the required documents and we process an analysis at no charge. The process from start to finish usually happens in 2-3 weeks. If you wish to move forward, you will select your desired payment option and we file your claim. Once filed, refunds are released based on IRS backlog. Currently, the IRS has stipulated a 20 week minimum turnaround on the ERC refunds.

The ERC credit is not considered income for federal income tax purposes, but you must reduce any deductible wage expenses by the amount of the credit. Please provide the credit information to your CPA for tax purposes.

Yes, the ERC funds will need to be reported on your income tax return. For more information, please refer to this documentation.

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ERC Zone is a specialty payroll company exclusively dedicated to understanding and maximizing the CARES Act Employee Retention Credit (ERC) for small businesses affected negatively by COVID 19.

3300 N Triumph Boulevard, Suite 100, Lehi, UT 84043

dporter@erczone.com

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ERC Zone, DOES NOT provide any legal or accounting advice and users of this web site should consult with their own lawyer and C.P.A. for legal and accounting advice.