Are You Worried About Taking the ERC?

Written By Cindy Ruelas

We’ve heard through the grapevine that many business owners are worried about taking the ERC. The ERC is the Employee Retention Credit (sometimes referred to as the ERTC). Essentially, it’s a tax credit from the government that you can qualify for if your business was impacted by Covid-19 in 2021 or 2022. If you haven’t yet, you still have time to apply. 

Here’s some examples of the type of Covid impacts that might help you qualify for the ERC:

  • Your business made less money than it should have because of government restrictions.

  • Your business made more money but you were able to sell fewer items or see fewer customers due to government Covid restrictions.

  • You had a reduction in employee hours or had to lay off employees even in the short term. 


So what do business owners really have to worry about when applying for the ERC?

Do you qualify?

There are a lot of companies out there that have started processing the ERC for small businesses. Many of them skip a very important step and just file the paperwork. They don’t take the additional step to verify that you qualify and that means that the government could issue you the credit and then take it back if you don’t qualify. We can see how this could cause all sorts of problems for small business owners.

It’s important to understand that every state had different rules and regulations around Covid and those rules could determine your qualification for the ERC. If someone is processing your paperwork, they should also be asking you specific questions about whether or not you qualify. These types of questions will revolve around how much money you made pre-Covid, comparing the amounts from different quarters of those years, and verifying the reasons you were unable to make the same amount of income during this period of time.

Burden of Proof

We’ve spent a lot of time helping people prove their qualifications for the ERC. And our job is to find concrete proof that their business was affected. We’ve already talked about how one of our clients did this in a previous blog, so check that out if you’re curious. The bottom line is that you'll have to show the government proof that your business was impacted by Covid regulations during this time frame. 

We Can Handle the ERC Filing for You

At Oracle Profitability, we see the ERC as a clear opportunity for entrepreneurs. We understand these complex processes and have helped dozens of businesses successfully navigate the ERC. Working with us allows you to have peace of mind that the credit is processed correctly and the future of your business is safe and secure.

We offer full-service ERC calculation, review, amendment, and submittal, and have already helped clients get back anywhere from $15,000 to $500,000 with the ERC. See if your business qualifies, and book a free consultation today.

 
 
Cindy Ruelas
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