Employee Retention Credit (ERC) Get Paid Back for Keeping Employees

“The ERC is Helping Small Businesses Recover from the Pandemic.”

Episode 157

with Brandee Gaar and Sunshine Chapman

Key highlights from the show:

• The birth of the ERC Provider business
• Methods to qualify for the ERC
• ERC is for companies with W2 employees, contractors do not qualify

The coronavirus pandemic affected all sectors of the economy in 2020, and small businesses were not spared either.

Many businesses across the country saw their supply chains interrupted, demand for their products and services decline, shortages in supplies and inputs, and government-mandated closures.

This virus has triggered a substantial short-term economic contraction, shuttered many firms, big or small, thrown tens of millions out of work, and has had other effects on business activities.

At the same time, the federal government implemented programs designed to help keep employees on payrolls.

In this episode, we have the privilege to talk to Sunshine Joy Chapman, the president at ERC Provider. This company is solely dedicated to helping small businesses recover from the pandemic.

The qualified team at ERC Provider helps you maximize your Employee Retention Credit, as they do all the work and all you do is collect the funds.

“Many businesses across the country saw their supply chains interrupted, demand for their products and services decline, shortages in supplies and inputs, and government-mandated closures.” 

Who are ERC Provider, and what do they do?

The ERC Provider is a group of experts helping businesses affected by the COVID pandemic get back on their feet by increasing their ERC, a tax credit offered by the IRS that was instituted by the CARES Act of March 2020.

This one is specifically for companies with w2 employees.

When it first came out, you had to have a revenue reduction of 50%, but the cool thing is, a year ago, they changed the law or opened it up.

So it’s not only for people who have revenue reduction, but it’s also if you had a supply chain disruption like inability to get things that you needed, or if you had to shut down impacts such as obviously, for weddings due to government orders.

At ERC Provider, what they do is they interview people and ask them to tell their story of what happened, how they got shut down, what kind of things were canceled, and what they used to do beforehand that they can’t do now.

The ERC Provider then matches up the story to the requirements to make sure that their case is really solid and then turns it in to their parent company, ERC Specialists, who does the tax processing.

The IRS was way behind and took about nine months to do this, but the ERC Specialists are taking about three months. The key is to have all your tax documents available. Once everyone is filed, they’re able to get the money quickly.

Please understand, results always have the tendency to vary.

The amount of loss incurred required to qualify for ERC

There are usually four ways for one to qualify for ERC:

1. Revenue reduction. During the pandemic time, from 2019 to 2020, you’d have to have a 50% or more reduction in revenue, and that’s just proved using P&L. The ERC Provider asks for the 2019-2020 P&L, and then for 2021 is just a 20% reduction in revenue and gross revenue.
   
2. Supply chain disruptions. The ERC Provider will just ask people if there was anything they needed but couldn’t get on time during the pandemic. So, for example, if you were a rental furniture provider for weddings and you couldn’t get certain tables, certain tablecloths, chairs, things that you would have been able to get in the past. That is a qualifier!
   
3. Partial shutdown. Partial shutdowns continued way after the full shutdowns; another was travel restrictions. The pandemic brought the international travel industry to an almost total standstill, and domestic traveling had a ton of rules and regulations to it. Unable to do speaking? Qualifier!
   
4. Reduction in capacity. If you had a venue and you used to have 50 people at once, but due to government orders throughout the last two years, they were not allowed to have more than 20 people, for example, that would be another way to qualify for ERC.

Qualifications and step-wise procedure to get an ERC

The ERC Provider team has a special link: http://ercprovider.com/weddingpros where you can fill out and put in the basic information for your company. After that, a facilitator will call you and walk you through and find out the story and get you filed.

Just fill out this form to request a call, after which they’ll call you immediately and get it going.

Immediately after the call, you’ll receive an upload link, and that’s where you would need to upload your documents which include but are not limited to, your IRS Forms 940, 941 quarterly tax returns, payroll tax, and then a list of everyone you paid. This is a payroll journal that’s going to have who you paid how much, and when throughout the entire period. The third and last thing is your PPP information; so how much you got and when.

Once this is uploaded, the ERC Specialists will send your package designed to agree and file in less than a week. It’ll take about three months to get the money when you sign that. So first, they’ll get a bunch of letters from IRS that says you’ve overpaid on your payroll taxes, and when you get that, that means that things have been approved, and it’s coming in usually a week or two after.

However, it should be noted that businesses with employees and not contractors are legible for ERC.

It doesn’t matter if the employees are full-time or part-time.

Sign up with the Wedding Pro CEO Podcast special link and see what your company will qualify for!! CLICK HERE!!!

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