Employee Retention Credit

The Employee Retention Credit (ERC) was a refundable payroll tax credit intended to assist businesses impacted by the COVID-19 pandemic. The ERC was available to employers, including tax-exempt and certain government organizations that satisfied one of the following:

• Operations that were fully or partially suspended due to orders from an appropriate governmental authority;
• Had gross receipts for at least one calendar quarter <50% in 2020 (or <20% in 2021) of the gross receipts as compared to 2019;
• Qualified as a recovery start-up business.

Claiming ERC does not automatically subject a company to audit; however, some of the claims that are more likely to be reviewed include:

• Businesses with large ERC claims,
• Aggressive, inconsistent, or poorly documented claims,
• Credits for periods with questionable eligibility, and
• Rapid or maximum credit claims across multiple quarters.

Protect Your ERC Refund! ERC Is On The Move – IRS Processing 400,000 Claims

ERC processing is progressing since the moratorium began in 2023. If your company claimed the ERC and you have not received your refund, have received a denial notice, or received a letter initiating an audit, it is time to take proactive steps to ensure you receive your refund IF you have a proper claim.