The Employee Retention Credit

Get up to $26,000 per employee from the IRS with our CPA firm that specializes in

ERC W/ Audit Protection!

The Employee Retention Credit

Get up to $26,000 per employee from the IRS with our CPA firm that specializes in

ERC W/ Audit Protection!

About The ERC Program

What is the Employee Retention Credit (ERC)?

ERC is a stimulus program designed to help those businesses that were able to retain their employees during the Covid-19 pandemic.

Established by the CARES Act, it is a refundable tax credit – a grant, not a loan – that you can claim for your business. The ERC is available to both small and mid-sized businesses. It is based on qualified wages and healthcare paid to employees.

Up to $26,000 per employee
Available for 2020 and the first 3 quarters of 2021
Qualify with decreased revenue or COVID event
No limit on funding
ERC is a refundable tax credit

How much money can you get back?

You can claim up to $5,000 per employee for 2020. For 2021, the credit can be up to $7,000 per employee per quarter.

How do you know if your business is eligible?

To qualify, your business must have been negatively impacted in either of the following ways:

A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.
A business can be eligible for one quarter and not another.
Initially, under the CARES Act of 2020, businesses were not able to qualify for the ERC if they had already received a Paycheck Protection Program (PPP) loan. With new legislation in 2021, employers are now eligible for both programs. The ERC, though, cannot apply to the same wages as the ones for PPP.

About The ERC Program

What is the Employee Retention Credit (ERC)?

ERC is a stimulus program designed to help those businesses that were able to retain their employees during the Covid-19 pandemic.

Up to $26,000 per employee
Available for 2020 and the first 3 quarters of 2021
Qualify with decreased revenue or COVID event
No limit on funding
ERC is a refundable tax credit

How much money can you get back?

You can claim up to $5,000 per employee for 2020. For 2021, the credit can be up to $7,000 per employee per quarter.

How do you know if your business is eligible?

To qualify, your business must have been negatively impacted in either of the following ways:

A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.
A business can be eligible for one quarter and not another.
Initially, under the CARES Act of 2020, businesses were not able to qualify for the ERC if they had already received a Paycheck Protection Program (PPP) loan. With new legislation in 2021, employers are now eligible for both programs. The ERC, though, cannot apply to the same wages as the ones for PPP.

Why Us?

Dedicated To

ERC

No need to be the guinea pig for your CPA. We average 10-20% more funding than a CPA not familiar with the program.

ERC Program Specialists

Our team strictly focuses on ERC allowing us to be the experts and resulting in more funding for your business.

Audit Protection Included

If you get audited, we will supply all criteria and assist in responding to the IRS.

Lightning Fast Results

Our streamlined process allow for faster results, which mean faster funding.

Maximum

Funding

We evaluate your claim in every way possible to ensure we maximize your credit.

Professional

Support

Although our process is quick and painless, when you have questions we have answers with a dedicated team of ERC support specialists.

Our services include:

Thorough evaluation regarding your eligibility
Comprehensive analysis of your claim
Guidance on the claiming process and documentation
Specific program expertise that a regular CPA or payroll processor might not be well-versed in
Fast and smooth end-to-end process, from eligibility to claiming and receiving refunds

Dedicated specialists that will interpret highly complex program rules and will be available to answer your questions, including:

How does the PPP loan factor into the ERC?
What are the differences between the 2020 and 2021 programs and how does it apply to your business?
What are the differences between the 2020 and 2021 programs and how does it apply to your business?
How do part-time, Union, and tipped employees affect the amount of my refunds?

Why Us?

Dedicated To

ERC

No need to be the guinea pig for your CPA. We average 10-20% more funding than a CPA not familiar with the program.

ERC Program Specialists

Our team strictly focuses on ERC allowing us to be the experts and resulting in more funding for your business.

Audit Protection Included

If you get audited, we will supply all criteria and assist in responding to the IRS.

Lightning Fast Results

Our streamlined process allow for faster results, which mean faster funding.

Maximum Funding

We evaluate your claim in every way possible to ensure we maximize your credit.

Professional Support

Although our process is quick and painless, when you have questions we have answers with a dedicated team of ERC support specialists.

Our services include:

Thorough evaluation regarding your eligibility
Comprehensive analysis of your claim
Guidance on the claiming process and documentation
Specific program expertise that a regular CPA or payroll processor might not be well-versed in
Fast and smooth end-to-end process, from eligibility to claiming and receiving refunds

Dedicated specialists that will interpret highly complex program rules and will be available to answer your questions, including:

How does the PPP loan factor into the ERC?
What are the differences between the 2020 and 2021 programs and how does it apply to your business?
What are the differences between the 2020 and 2021 programs and how does it apply to your business?
How do part-time, Union, and tipped employees affect the amount of my refunds?

Ready To Get Started? It’s Simple.

1.

We determine whether your business qualifies for the ERC.

We analyze your claim and compute the maximum amount you can receive.

Our team guides you through the claiming process, from beginning to end, including proper documentation.

Frequently Asked Questions (FAQs)

DO I HAVE TO REPAY THE ERC CREDIT?

No. This is not a loan. It’s a refundable tax credit. When we file your ERC claim we request a refund check for you.

HOW MUCH DO YOU CHARGE?

Our service charge is based on a percentage of the credit recovered. We calculate and provide our fee with our free analysis. Since we are typically able to recover 10-20% more than someone less familiar with the program, our fee is very affordable. Just like a good CPA, using the right team for this process pays for itself.

CAN'T I JUST HAVE MY CPA FILE? WHY WOULD I USE JORNS & ASSOCIATES?

Of course. The challenge is the ERC credit is taken on your payroll returns and not through your business income tax returns, which is what most CPA’s handle. Because of this most CPA’s don’t process this credit, unless they process your payroll in house. This is also a big reason why this credit is so underutilized. Since CPA’s don’t typically handle it and they are the tax experts, it has mostly fallen in a middle ground where few are able to effectively process the credit. Interestingly, we receive a large portion of our clients from CPA’s.

At Jorns we have decades of payroll experience, which has allowed us to specifically focus to understanding and maximizing the ERC program. In our experience we have found that due to the complexity (the ERC tax code is over 200 pages) and time investment necessary to understand the ERC program, very few are able to effectively maximize this sizeable credit for your business.

CAN I GET ERC FUNDS IF I ALREADY TOOK THE PPP?

Yes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, modified the ERC credit rules. One of the modifications included allowing a company to have a PPP loan and still take advantage of the ERC credit. However, you can’t use the same dollar for dollar funds. We take this into account when processing your ERC credit.

MY REVENUE WENT UP IN 2020, CAN I STILL QUALIFY FOR THE ERC PROGRAM?

Yes! There are two possible qualifications for 2020: revenue reduction, or a “full or partial shutdown of your business due to COVID-19”. Specifically the IRS describes this as “A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.” Below are several examples of qualifying events:

Example 1: A restaurant must close or limit its on-site dining. Such as having to close down every other table, due to COVID-19 restrictions.

Example 2: A business that needs to meet with clients in person and has to cancel meetings due to COVID-19 restrictions.

Example 3: A business has to reduce their operating hours because COVID-19 restrictions and cleaning requirements.

Example 4: A business had delayed production timelines caused by supply chain disruptions.

Example 5: A business with a planned event has to cancel that event, or restrict the amount of people who can attend due to COVID-19 restrictions.

IS THE ERC CREDIT TAXABLE?

The ERC credit is not considered income for federal income tax purposes, but you must reduce any deductible wage expenses by the amount of the credit. Please provide the credit information to your CPA for tax purposes.

WILL THE ERC FUNDS RUN OUT?

This is not a lending program – tax refunds are issued by the US Treasury. Therefore, all eligible employers will receive the funds.

HOW WILL I MAKE PAYMENT?

You can pay with a check, bank wire, or ACH.

I'M GETTING MORE IN ERC CREDIT THAN I PAID IN TAXES?

Remember that this program is taken according to payroll taxes paid, not on income taxes. ERC funds not applied towards owed payroll taxes are treated as an ‘overdeposit’ of taxes that will be requested as a refund check from the IRS.

AS AN OWNER DO MY WAGES, OR THE WAGES OF ANY FAMILY MEMBER I EMPLOY QUALIFY?

Maybe. Wages of owners who have majority ownership, defined as over 50%, do not qualify, nor do the W2 wages of any immediate family members of the owner. In the case an owner has less than 50% ownership, their W2 wages qualify, as do the W2 wages paid to immediate family members.

CAN I QUALIFY FOR THE ERC IF I'M SELF EMPLOYED?

No, if you are majority owner (over 50%) of your company then your wages do not qualify.

HOW LONG DOES IT TAKE TO GET MY ERC CREDIT?

This is how the process works: If you wish to move forward, you will sign the engagement agreement, select your desired payment option, and we will gather the data, run the calculations, build your qualification report, and file your claim. Once filed the IRS is taking 3-5 months to issues checks below $200,000 per quarter and 7-10 months to issue checks that are above $200,000 per quarter.