ERC Updates

2020 & 2021 ERC credits are trickling in.   The IRS has confirmed they are in Processing, but no time line is available.

Q3 and Q4 ERC
The only qualifications left to qualify for the ERC for Q3 and Q4 are:

1. 2021 Q2 revenue declined by 20% or more compared to Q2 of 2019
*If this qualification is met, the ERC can be claimed in Q3

2. 2021 Q3 revenue declined by 20% or more compared to the Q3 of 2019
*If this qualification is met, the ERC can be claimed in Q3 & Q4

3. 2021 Q4 revenue declined by 20% or more compared to the Q4 of 2021
*If this qualified is met, the ERC can be claimed in Q4

If you fit the 20% rule for any Quarter, you automatically qualify for the next Quarter.

Ex:  If your revenue was $200,000 in Q2 of 2019, and your revenue was $160,000 in Q2 of 2021 you qualify for Q2 2021 and Q3 2021.

PPP and the ERC
If you received a PPP loan in 2021, you must use a minimum of 60% of your PPP money for payroll to qualify for forgiveness. The remaining 40% can be used for qualified “other expenses”.  We will want to allocate as much as possible to “other expenses” to maximize your ERC.