The Employee Retention Credit or ERC is a government a tax credit program aimed at assisting businesses that retained their employees during 2020 and the first three quarters of 2021. Employers who meet the eligibility criteria can receive a refund of up to $5,000 per employee for the entire year of 2020. Additionally, for each quarter of the first three quarters in 2021 (Q1 to Q3), they can receive a refund of up to $7,000 per employee who remains on the payroll. This means that eligible employers can potentially receive a refundable tax credit of up to $26,000 per employee, providing them with a significant amount of money that can be used to enhance their businesses.

During the pandemic, both the PPP and ERC were introduced as measures to support businesses. Unfortunately, the ERC did not receive the same level of marketing and promotion as the PPP, causing it to be overshadowed by its counterpart. At EPI 2 Services, we acknowledge the immense stress and frustration that employers have faced during these challenging times, so we want to alleviate their burdens and provide guidance, assisting them in reclaiming the benefits they rightfully deserve.

Many business owners might find this program too good to be true. We understand their concerns, which is why we are doing our best to assure them that the program is completely legitimate and legal. This is a government initiative program aimed at providing financial assistance to businesses affected by the COVID-19 pandemic. It was created under the CARES Act in March 2020 and has been expanded and extended through the Consolidated Appropriations Act in March 2021.

There is a common misconception surrounding the purpose of the ERC, leading many employers to mistakenly overlook its benefits and miss out on reclaiming their rightful funds. It is crucial to clarify that the ERC is not a form of loan and does not entail any repayment obligations. Rather, it operates as a refundable tax credit that businesses can utilize to offset their Social Security tax responsibilities. By leveraging this credit, eligible businesses can reduce their tax liability, and any excess amount can be refunded by the IRS.

If you have borrowed from PPP1, PPP2, or both, there is no need to worry. The Consolidated Appropriations Act 2021 has ensured that all PPP borrowers are now included and eligible for the program.

The specific documents and information necessary may differ for each business. In order to provide our clients with the best experience, EPI 2 Services typically requires a deeper understanding of their unique circumstances. This allows us to determine the exact requirements and inform them accordingly.

As a general guideline, clients should anticipate receiving all their checks approximately 32 weeks after submitting all the necessary documents and information to the IRS. However, the actual time frame for receiving the refund for the qualifying quarters can be influenced by various factors.

For the most expedient updates on your funding status, we recommend contacting the IRS directly at (800) 829-4933. If you require any assistance, please don't hesitate to reach out to us. We are here to provide support and guide you through the process.