by MikethePharmacist
In this blog we are going to summarize what the Employee Retention Credit – or ERC– is,
how it came about, and who it was designed and created for.
The ERC program is a government stimulus program delivered by the CARES ACT which is the very same act that passed the PPP loan, which stands for the Paycheck Protection Program. The PPP is a $953-billion business loan established by the US Federal Government in 2020 through the Coronavirus AID, Relief, and Economic Security Act (CARES ACT) to help certain businesses, self-employed workers, sole proprietors, certain nonprofit organizations, and tribal businesses continue paying their workers, and that has established and delivered relief to millions of businesses across the nation to help them during the pandemic.
The ERC program came out at the exact same time but the difference was that businesses that already applied and received for PPP could also not apply for ERC so there is still some confusion among the two, as now rules have changed.
The great news is this stimulus has been revised and amended over time so millions of new business owners can now can file for, qualify for, and get funded for funding through the ERC program, even if they received the PPP.
So what does this program actually do and who was it created for?
For first time ever our federal government is basically saying, Thank you Mr. and Mrs. Business Owner for retaining your employees during our most difficult time in our nation facing the COVID 19 pandemic.
They are basically saying, “If you retained your works with a W2 salary during 2020 and the first three quarters of 2021, we the government want to say thank you and give you a big chunk of those payroll taxes you paid out during that time regardless if your business was fully operational or partially suspended, or fully shut down, as long as you were paying W2 wages during that time.” So essentially this is a reward from the government for business owners keeping our economy running the whole time by retaining their employees and not laying them off and just waiting for the Pandemic to end.
There are some qualifiers later and a proper submission of paperwork to receive the funds- these are tax free and business owners may receive up to $26,000 per employee. Imagine what you could do with that money – replace old and damaged equipment, buy more inventory, upgrade the POS system, fix the roof, give out bonuses, have a pizza party, buy some marketing material, whatever.
There are 308 pages of legalese so it’s not something a CPA or accountant would want to tackle- and this is not something they would have time for. This program is not going to last much longer, so if you have yet to file, or if the filing was only part of the time period this is going on, get a free consultation as soon as possible. There are no charges unless a refund is issued so the only risk is to do NOTHING.
I have looked at various options for those doing ERC filing and I strongly recommend scheduling a call with the Clai Group Inc, a team I know that does ERC all day everyday and has brought business owners $2 million dollars in funding already. You can schedule a free consultation – by texting 702-518-3638 and mention that MikethePharmacist sent you.
Now that you know the ABC’s of ERC, let’s get you a refund ASAP!
MikethePharmacist