Frequently Asked Questions
Yes. Even if your revenue didn’t decrease in 2020 or 2021, you may still qualify if your capacity to do business was reduced more than 10% because of Covid-era restrictions. For example, if your business had capacity limits and you had to limit staffing, or if your business couldn’t obtain necessary materials because your suppliers were affected by Covid restrictions, you may qualify during the periods in which those restrictions were in place.
Yes. The calculations are complex, which is why you should work with an expert to see if you are eligible. However, broadly speaking, while the PPP may decrease the amount of ERC you can receive, it does not remove eligibility. Our claims analysts will review your financial information to determine the extent of applicable offsets and remaining credit available.
There are two parts to the ERC claims process. The first is relatively fast: once we receive all of the necessary documents from you, we can generally process your claim within ten business days, and, with your signature and authorization, file the required forms with the IRS. The second phase takes longer: the IRS is currently taking approximately four months to process ERC returns. Fortunately, you do not need to pay our fees until your ERC is received, and we will monitor the status of your claim directly with the IRS.
In principle, yes — but in practice, ERC preparation requires a complex series of calculations with which most accountants are unfamiliar. In fact, we often work with accountants who subcontract this work to Spider ERC, since this is our specialty. We’re a boutique shop that does one thing and one thing only: obtain ERC returns for our clients.
Note, however, that while the ERC is not taxable, it does reduce your business’s deductible wage expenses by the amount of the credit. After you receive the ERC, you should provide your ERC information to your accountant.
Good questions! The ERC is very much for real. Remember, this credit is part of the CARES Act, which is intended to help America recover from the Covid-19 pandemic. Think of it this way: If your business kept employees on payroll in 2020 or 2021, even if your revenue went down or your capacity was reduced by pandemic restrictions, you played your part, and now you are the intended beneficiary of this credit. It’s not free money — it’s money you’re entitled to for helping your team get through one of the most difficult times in our nation’s history. So, while the prospect of receiving tens of thousands of dollars from the IRS may seem like a windfall, remember: you did the right thing, and this credit is here to help you.
We know that every business is different, and that the ERC can seem complex. We’re happy to answer any questions you have by phone or email. Just tap the button below to get in touch.