Was Your Organization Impacted by the Pandemic and Related Public Health Restrictions?

If your organization suffered significant declines in revenue and/or was fully or partially shutdown by Government Mandates or Orders AND you continued to maintain payroll, it is very likely you will be eligible. Even if you received PPP loans or Shuttered Venue Grants.*

*Receiving PPP Forgiveness and/or Shuttered Venue loans does not disqualify your organization from eligibility for ERC. However, any wages that were forgiven or replaced cannot be used when calculating ERC eligibility and will be deducted from qualified wages.

There Are Two Pathways to Determining Eligibility for ERC:

1) A Significant Decline in Gross Receipts in any calendar quarter between April 2020 through September 2021* as compared to the same calendar quarter in 2019.

2) An impact of greater than 10% on a “More than Nominal Aspect of your Operations” **due to a Full or Partial Shutdown resulting from a Government Order or Mandate.*

*Some start -up businesses may be eligible for ERC in Q4 of 2021.

*More than Nominal” is defined as an aspect of your business that represented at least 10% of total receipts or total payroll service hours in a given quarter in 2019. To qualify using this criteria, your organization must experience a greater than 10% decline in corresponding quarters during the pandemic in those same aspects of your business as a result of a Government order or mandate.

Disclaimer:

While I am an expert in the Employee Retention Tax Credit program, I am not an expert in all of the Government Mandates specific to each State and how your specific organization was impacted. It is the Organization’s responsibility to provide evidence of closure or business disruption based on Government Mandates or Orders. Choosing to be closed or downsize out of an abundance of caution does not suffice, you must be able to reference relevant Orders and only wages paid during the impacted periods qualify for ERC consideration.

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