Enterprise Accounting

Common Questions about Employee Retention Credits

What is ERC?

This government sponsored program provides a refundable tax credit that could help a business owner like you mitigate the financial effects of the pandemic. It was introduced as part of the CARES Act and has since been expanded.

How do I know if my business is eligible for ERC?

Your business could be eligible if:

• Business operations were subject to government restrictions or shutdowns OR

• There were seasonal changes in revenue OR

• Your business received the PPP2 loan

Will I have to pay it back?

ERC is a government sponsored rebate program not a loan, so you won’t have to pay it back. Any refunds your business receives through the program is considered taxable income however.

What time period is considered for my business to qualify for ERC?

There are several factors that impact a business’ eligibility, including revenue for all of 2019 and 2020 through September 30, 2021.

What if I didn’t apply by September 30, 2021?

The end of Q3 2021 is the last date a business’ revenue will be part of the consideration when determining eligibility. You have three years to apply for ERC.

How can Enterprise Accounting help my business attain the ERC?

We have the expertise needed to research and assess your business’s eligibility, coordinate with all other government grants, loans and subsidies, and submit application for the credit in a timely manner. Our team of professionals is up-to-date with changing regulations and will assist you through the entire process.