Employee Retention Credit

1. We are considered an essential business and do not qualify.

False. An essential business can qualify for the ERC because gross receipts declined by 20% year-over-year or because its operations are fully or partially suspended because of a government order.

2. We took the PPP and do not qualify.

False. The stimulus package passed in December 2020 has always allowed for companies who received PPP funds to also take the ERC!

3. Our business stayed open the whole time and does not qualify.

False. Your company most likely had to perform extra cleaning or sanitizing, installing/utilizing protective equipment, temperature checks, a change in job roles/functions, and more. If your business had to change operations in any way due to governmental orders OR if gross receipts declined by 20% year-over-year, your business qualifies.

4. Because our company didn't experience a year-over-year decline in sales by 20%, we do not qualify.

False. Your company had to see either a 20% decline in gross receipts OR suspension in operations, not both. Almost every business has been impacted in some way by a national, state, or local governmental order, therefore qualifying the business.

5. We have been profitable through the Pandemic and therefore do not qualify.

False. Even if you have been profitable, we have helped many companies that were profitable in 2020 receive anywhere from thousands to millions of dollars in credits. This includes grocers, manufacturing, logistics companies, and more. If your business has been impacted in some way by the pandemic, you qualify.

6. We do not pay taxes because we are a nonprofit, and do not qualify.

False. Due to recently modified rules, this tax credit applies to tax-exempt organizations if the business operations have been fully or partially suspended due to governmental orders related to COVID-19. Many nonprofit daycares, schools, daycares, counseling centers, ministries, churches, and clubs closed their buildings and/or partially suspended services to comply with government orders and guidelines. This suspension of operations would qualify that organization for the ERC.