Question 1

What is the Employee Retention Credit (ERC)?

Accepted Answer

ERC is a refundable payroll tax credit.  It's a refund, not a loan.  Born out of the same CARES Act as PPP loans, its goal is to provide economic relief for businesses who retained employees during the COVID-19 pandemic.

Question 2

Why Should I file a claim for ERC?

Accepted Answer

Because the IRS encourages you to.

IR-2021-21, January 26, 2021

WASHINGTON — “The Internal Revenue Service urges employers to take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll.”

Question 3

How do I know if my business qualifies for ERC?

Accepted Answer

The IRS expects that over 70% of SMBs qualify for ERC. At CRG, Our experts will help determine your business’ eligibility. We offer a no obligation free consultation. It costs you nothing to have our team of experts analyze your claim for eligibility.  Talk to a CRG Claims Manager to get more information.

Question 4

Why Should I use an ERC Refund Specialist?  Why Use Capital Recovery Group?

Accepted Answer

ERC is what we do. With over 70,000 pages of tax code; it’s impossible to be an expert on all of them. You need to work with an expert in ERC. At CRG, we understand the intricacies and nuances involved in determining your eligibility and accurately calculating your refunds.

Question 5

How much does it cost?

Accepted Answer

There are never any up-front fees or out of pocket expenses for our service. The initial analysis to determine your eligibility and estimated credit is free. If you file for an ERC with CRG, our fee is a percentage of the credit you receive. We’re paid our fee after your business receives its refund check.

Question 6

How long will it take to get my refund?

Accepted Answer

IRS processing times for receiving your business’s refund check from the US Treasury is currently averaging three to six months for our clients.

Question 7

Do I have to pay this back?

Accepted Answer

No, this is not a loan, it's a refund. It's money for your business, and it's up to you how you spend it.

Question 8

Is there a deadline to apply for ERC?

Accepted Answer

Yes, and time is running out.  Businesses can file retroactively for the 2020 credit until April 15, 2024, and for the 2021 credit until April 15, 2025.  Don’t delay!

Question 9

I was told I do not qualify for ERC.

Accepted Answer

In early 2021, the rules were updated to allow businesses to claim an ERC refund even though they had received a PPP loan.  Unfortunately, many accounting and payroll professionals are under the impression that the old rules are still in effect.

We offer a no obligation free consultation. It won’t cost you anything to have our experts analyze your claim to calculate how much your company may recover.

Question 10

Why haven’t I heard of ERC before?

Accepted Answer

PPP loans were mass advertised by the U.S. Small Business Administration (SBA), but ERC is claimed directly through the US Treasury.

Question 11

How is ERC different from PPP loans?

Accepted Answer

PPP was a forgivable loan.  ERC is a payroll tax refund you receive for payroll taxes your business already paid.

Question 12

Can't I just have my CPA file?

Accepted Answer

Yes, but most CPA's are simply not experts at ERC because they are unfamiliar with the intricacies of the program.  In order to maximize your credit, your CPA must be familiar with the details for the program.

Question 13

Will the ERC funds run out?

Accepted Answer

ERC is a payroll tax refund, so all eligible employers that file a claim will receive the funds.   There is no limit on the amount the U.S. Treasury will payout for this program.

Question 14

Is the ERC Credit taxable?

Accepted Answer

No, but you must reduce any deductible wage expenses by the amount of the credit.

Question 15

What can I use my refund for?

Accepted Answer

You can use your ERC refund for anything you want.  There are no restrictions on how you use your refund.

Frequently Asked Questions