Steps for Filing your ERC Claim

As an employer, you feel responsible for your business and your hard-working employees. It’s no secret that COVID-19 turned the world upside down and probably made it beyond difficult to take care of your business the way you always have in the past. But, we have some good news: the Employee Retention Credit (ERC) was legislation designed to help eligible small to medium-sized businesses get back on their feet. Here, we’ll tackle the question, “What is the Employee Retention Credit program, and how can qualifying businesses benefit from it?” We’ll also give you the five steps needed to navigate the ERC process like a pro.

What is the Employee Retention Credit?

In short, the ERC is a payroll tax credit for certain eligible businesses. Similar to the Paycheck Protection Program (PPP), this legislation is part of the CARES Act. Due to various extensions and changes by the IRS, the qualifying years for the ERC are the last three quarters 2020 and the first three quarters of 2021. Although the initial ERC period has ended, eligible businesses can still apply for their ERC refund. However, the window of opportunity won’t be open forever. To get the ball rolling, follow these five steps:

1. Know the ERC eligibility requirements

To know if your business may qualify for the payroll tax credit, you’ll need to know the ERC eligibility requirements. While these requirements are complex, if the pandemic negatively impacted your business, it may be eligible. Ensuring you’re qualified may help speed up the ERC application process. To find out if you may qualify for ERC, reach out to our team..

2. Gather your paperwork

If you are eligible, ensure you have all your ducks in a row for a smooth application process. You should gather the necessary documents and quickly check to ensure they are all completed. In addition to these documents, you’ll also need a Form 941-X to amend your Form 941 for each qualifying quarter (our specialists will be able to assist!).

3. Find the right ERC Partner

An ERC originator is a company that assists eligible businesses in claiming their Employee Retention Credit refund. We at ERCZilla are here to be a resource, and we don’t have any upfront fees, and don’t get paid unless we get money for you.

4. Work with your ERCZilla Partner to apply for the ERC

Our ERCZilla professionals will stay in touch with you during the entire process. We'll estimate your refund, ask for more information to help ensure a smooth process, let you know if we find any mistakes or missing information, and assist you with submitting your amended paperwork to the IRS for review. Although the time can vary, this part of the process typically takes three to six weeks to ensure the accuracy and completeness of your information before you file with the IRS.

5. Claiming the ERC refund

Depending on your circumstances, there may be additional steps. Generally speaking, most small businesses that successfully submit their claim to the IRS will receive their refund within six to nine months. There have been some IRS processing delays, but you can check the status of your refund by visiting the IRS website or calling 800-829-1954.

If you’re wondering if the process is worth the time, remember the Employee Retention Credit, remember eligible businesses could receive up to $26,000 per eligible employee kept on the payroll from 2020-2021, which is potentially hundreds of thousands of dollars going back into your business where it belongs.