Get up to $26,000 per employee.

The Employee Retention Credit (ERC) was introduced in March 2020 as part of the CARES Act alongside the Paycheck Protection Program (PPP) to encourage businesses to retain and pay their employees during the pandemic.

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The employee retention credit entitles your business to recover up to $26,000 per employee sustained through the pandemic.

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Our team of experts will help you understand the program and prepare a claim that maximizes your refund.

All eligible employers will receive the funds they are qualified for so long as they file their claim within the 3 year period:

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2020 claims must be filed before [December 31, 2023]

2021 claims must be filed before [DATE]

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[need graphic of timelines]

No. The employee retention credit entitles your business to recover up to $26,000 per employee sustained through the pandemic. This is a payroll refund, not a loan. How you use the funds is entirely up to you.

To apply for the ERC program, businesses can follow these steps:

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1. Click on the "Get Started" button on our ERC website to begin the application process.
2. Our staff will then reach out to the business to gather more information and determine if they are eligible for the program.
3. If the business is eligible, we will guide them through the application process, which includes submitting the necessary documents and information to the IRS.
4. Once the application is submitted, our team will continue to monitor the status of the application and communicate with the business regarding any updates or additional information needed.
5. If the application is approved, the business will receive the funds from the ERC program.

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It's important to note that businesses can also apply for the ERC program directly through the IRS website or through their tax professional. However, our ERC website provides a streamlined process for businesses to receive support and guidance throughout the application process.

BasisERC is a comprehensive and user-friendly ERC website designed to support businesses in applying for and maximizing their benefits from the Employee Retention Credit program. Here are some reasons why businesses may choose to use Basis ERC:

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1. Expert guidance: Our team of experts is available to help businesses navigate the complex eligibility requirements and application process for the ERC program. We can provide personalized guidance and support to ensure that businesses are accurately reporting their information and maximizing their eligible credit amount.
2. Streamlined application process: Our Basis ERC website provides a streamlined application process that allows businesses to easily and securely submit their information and documentation. Our team will then review the application and work with the business to ensure that they are eligible for the program and accurately report their eligible credit amount.
3. Resources and education: Our Basis ERC website provides a wealth of resources and educational materials to help businesses understand the ERC program and how it can benefit their business. We also offer regular updates and news on changes to the program to ensure that businesses are up-to-date on the latest developments.
4. Compliance and risk management: Our Basis ERC website is designed to help businesses minimize the risks associated with applying for the ERC program. We can assist businesses in accurately reporting their information and documentation, complying with the program's requirements, and avoiding penalties or fines.

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Overall, Basis ERC is a reliable and trusted resource for businesses looking to apply for and maximize their benefits from the Employee Retention Credit program.

There are several factors that can commonly slow down the ERC application process. Here are some of the most common issues:

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1. Documentation: One of the most common reasons for delays in the ERC application process is a bottleneck in getting the required documentation from the business, particularly from owners and executives. Without complete and accurate documentation, the application cannot be processed.
2. Eligibility requirements: The ERC program has several complex eligibility requirements, and businesses may struggle to determine whether they qualify for the program. If there is uncertainty or confusion around eligibility requirements, this can slow down the application process.
3. Coordination with tax professionals: Many businesses choose to work with their tax professionals to apply for the ERC program, and coordinating with outside parties can sometimes cause delays in the process.
4. Program changes and updates: The ERC program has undergone several changes and updates since its inception, and businesses may struggle to keep up with the latest guidance and requirements. This can lead to confusion and delays in the application process.
5. IRS processing times: Finally, the IRS processing times for ERC applications can also contribute to delays. With a high volume of applications to process, the IRS may take longer than expected to review and approve applications.

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At BasisERC, we can help businesses navigate these common issues and streamline the ERC application process to minimize delays and ensure that they receive their eligible credit as soon as possible.

What documents and information are required to apply for the ERC program?

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The documents and information required to apply for the ERC program can vary depending on the individual circumstances of the business. However, here are some common documents and information that businesses may need to provide as part of the application process:

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1. Business identification information, such as the business name, address, and employer identification number (EIN).
2. Proof of eligibility, such as documentation of a full or partial suspension of operations or a significant decline in gross receipts.
3. Payroll records, including Forms 941 for the applicable quarters, that show the wages paid to employees during the eligible period.
4. Documentation of healthcare expenses that are eligible for the ERC program, such as health insurance premiums paid by the business.
5. If applicable, documentation of any PPP loans received and how the funds were used.
6. Any other relevant documents or information that may be required to determine eligibility or calculate the credit.

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Our ERC website can help businesses identify the specific documents and information that they will need to provide as part of their application. Additionally, our team of experts can assist businesses in gathering and organizing the necessary documents to ensure a smooth application process.

The ERC program can impact a business's tax filing in several ways. Here are some key points to keep in mind:

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1. The ERC is a refundable tax credit that can be claimed on a business's payroll tax returns (Form 941) for the applicable quarters.
2. Businesses that receive advance payments of the ERC for the 2021 tax year will need to reconcile those payments with their actual ERC on their tax return. This could result in an additional payment or a reduction in the refund amount.
3. The ERC can be used to offset certain payroll taxes, such as Social Security and Medicare taxes, but it cannot be used to offset federal income tax liabilities.
4. The ERC is considered taxable income for businesses, and they will need to include it in their gross income on their tax return.
5. Businesses may need to file amended tax returns for prior years if they are eligible for the ERC for those years.

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It's important for businesses to work with their tax professional or legal counsel to ensure that they are properly accounting for the ERC on their tax returns and maximizing their potential benefits. Basis ERC can provide the resources and guidance to help businesses navigate the tax implications of the program.

If a business receives more funds than it was eligible for under the ERC program, they may be required to repay the excess funds to the IRS. This could include both the excess funds received and any associated interest or penalties.

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It's important for businesses to carefully review the eligibility requirements and accurately report their information and documentation when applying for the ERC program to avoid receiving more funds than they are entitled to. Basis ERC can provide guidance and support to help businesses understand the eligibility criteria and accurately calculate their eligible credit amount.

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If a business does receive excess funds, they should work with their tax professional or legal counsel to determine the appropriate steps to take to repay the funds and minimize any associated penalties or fines. The IRS may also conduct audits or investigations to ensure that businesses are in compliance with the ERC program's requirements and to recover any excess funds that were improperly received.

Yes Basis ERC requires a 2% deposit prior to submission of documentation to the IRS, and the remaining fees will be invoiced upon completion of your ERC claim.

An employer receiving an ERC refund should not include the credit in gross income for federal income tax purposes per IRS Notice 2021-20; however, under rules similar to IRC Section 280C (which also applies to other tax credits, such as R&D credits), such employer should reduce their wage expense by such amount in 2020 and 2021.

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If the company was in a taxable loss position greater than the amount of the credit, a reduction of wage expense may only reduce their loss position for such a year with no additional tax due because of the credit.

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If the company was in a taxable income position in either 2020 and/or 2021 (or had a loss less than the credit), the reduction of wage expense related to the credit may result in an increase in federal taxable income for those years.

If you kept employees on payroll and experienced a substantial decline in gross receipts or even a partial suspension of operations your business qualifies.

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Substantial Decline in Gross Receipts (SDGR)

compares quarterly periods in 2020 and 2021 to the same quarterly period in 2019. The relevant percentage decline is 50% in 2020 and 20% in 2021.

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Full or Partial Suspension of Operations (FPSO)

If a business doesn't qualify under the SDGR test, it can still qualify if it meets the. This test applies for the periods of time when the operations of a business were shut down or subject to certain restrictions or modifications due to a COVID-19 government order.

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We have helped thousands of clients confirm their eligibility.

ERC went live in March 2020 but was mostly ignored due to the focus on PPP. However, in December 2020, the Government updated the law with the release of ERC “Version 2” through the CAA. Under Version 2, employers were both retroactively and prospectively allowed to take both ERC and PPP (Rounds 1 and 2). Version 2 extended the credit into Q1, Q2, and Q3 of 2021 and increased the field of eligible employers by allowing companies with up to 500 employees to take the credit (up from 100 for 2020). Hundreds of thousands of businesses in the United States are eligible.

The employee retention credit entitles your business to recover up to $26,000 per employee sustained through the pandemic.

The time it takes to receive funds from the ERC program can vary depending on several factors, including the volume of applications the IRS is processing and the complexity of the business's application. In general, it can take anywhere from a few weeks to several months to receive funds from the ERC program.

Several types of businesses are eligible for the ERC program, including:

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1. Employers who experienced a full or partial suspension of their business operations due to government orders related to COVID-19.
2. Employers who experienced a significant decline in gross receipts compared to a prior year quarter.
3. Tax-exempt organizations that meet the above criteria.
4. Businesses of any size, including sole proprietors and independent contractors, that meet the above criteria.

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It's important to note that certain businesses, such as state and local government entities and businesses that received a PPP loan, may have some restrictions on their eligibility for the ERC program.

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Additionally, the eligibility criteria and calculation methods for the ERC program have changed over time, so businesses should check the current guidance from the IRS to determine their eligibility. Our ERC website can help businesses navigate the eligibility criteria and determine if they are eligible for the program.

Yes, a business can receive both the ERC program and other COVID-19 relief programs, including PPP loans, EIDL loans, and state and local grant programs. However, businesses cannot receive duplicative benefits for the same wages or expenses.

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For example, if a business received a PPP loan and used the funds to pay eligible wages, they cannot also claim those same wages for the ERC program. However, they may be able to claim wages that were not covered by the PPP loan or other relief programs.

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It's important to note that there are specific rules and guidelines regarding how the various COVID-19 relief programs interact with each other, and businesses should consult with their tax professional or legal counsel to determine the best strategy for maximizing their relief benefits. BasisERC can also provide the guidance and resources needed to help businesses navigate the various relief programs and determine how they can best utilize them.

There are potential risks and penalties for businesses that apply for the ERC program if they do not meet the eligibility criteria or if they make errors or misrepresentations on their application. Here are some potential risks and penalties to be aware of:

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1. Penalties for fraud or false statements: If a business knowingly makes false statements or representations on their ERC application, they may be subject to penalties, fines, or even criminal prosecution.
2. Repayment of funds: If the IRS determines that a business was not eligible for the ERC program or that they received more funds than they were entitled to, they may be required to repay the funds with interest.
3. Audit or investigation: The IRS may audit or investigate businesses that receive funds from the ERC program to ensure that they are in compliance with the program's requirements. This could result in additional penalties or fines if the business is found to be in violation.
4. Reputation damage: In addition to the financial penalties, businesses may also face damage to their reputation if they are found to have improperly received funds from the ERC program.

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It's important for businesses to carefully review the eligibility requirements and accurately report their information and documentation when applying for the ERC program. BasisERC can provide guidance and support to help businesses minimize the risks and ensure that they are properly following the program's requirements.

If a business is audited after receiving funds from the ERC program, the IRS will review the business's application, documentation, and any other relevant information to ensure that they were eligible for the program and accurately calculated their eligible credit amount.

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If the IRS determines that the business was not eligible for the ERC program or that they received more funds than they were entitled to, the business may be required to repay the funds with interest and may also be subject to penalties or fines.

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In some cases, an audit may also result in the IRS identifying errors or omissions in the business's tax returns, which could lead to additional tax liabilities, penalties, or fines.

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It's important for businesses to keep accurate records and documentation related to the ERC program and to ensure that they are in compliance with all of the program's requirements. Basis ERC website can provide the right guidance and resources to help businesses navigate the audit process and work with the IRS to resolve any issues that may arise.