How to Apply for Employee Retention Credit

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Contributor, Benzinga
August 4, 2023

The Employee Retention Credit (ERC) emerged as a crucial lifeline for businesses during the COVID-19 pandemic, providing financial assistance to those impacted by the crisis. This comprehensive guide will walk you through the process of applying for the ERC, highlighting eligibility criteria, benefits, and the best place to get an ERC - Innovation Refunds.

Understanding Employee Retention Credit (ERC)

The ERC is a refundable payroll tax credit designed to incentivize businesses to retain their employees during challenging economic times. It offers significant potential refunds to eligible businesses, making it a powerful tool for financial stability.

Eligibility Criteria for ERC

To qualify for ERC, businesses must meet specific criteria set by the Internal Revenue Service (IRS). These criteria include the number of employees, the impact of the pandemic on operations or revenue, and adherence to government orders. Innovation Refunds specializes in assisting small and medium-sized businesses in determining their eligibility and navigating the application process.

Qualifying for ERC: Different Paths

ERC offers multiple paths to qualification. Businesses can qualify based on a decline in gross receipts, full or partial suspension due to a government order, or as a recovery startup business. It is crucial to demonstrate the link between the government order and the suspension of business for eligibility.

ERC Application Process

Applying for ERC is a simple process, here is what you need to do.

Gather Necessary Information

Before applying for ERC, ensure you have all the required information, including employee count, gross receipts, and any relevant government orders or suspensions that affected your business.

File an Amended Employment Tax Return

Eligible businesses can claim ERC by filing an amended employment tax return. The deadline for 2020 tax periods is April 15, 2024, and for 2021 tax periods, it is April 15, 2025.

ERC Benefits: Expert Tax Credit Advisors

When businesses hope to avail themselves of government programs like the Employee Retention Credit (ERC), they need help. This is a complex and time-consuming process that you can expedite with help from ERC Benefits. The firm doesn’t charge upfront fees, works to help you recovery all the money you can and only charges a small fee based on the recovered funds when the IRA mails out a check.

Innovation Refunds: Your Trusted Partner for ERC

Innovation Refunds has established itself as a reliable partner for businesses seeking to claim ERC. The company's network of professionals offers expert guidance and support throughout the application process. Client testimonials praise Innovation Refunds' efficiency and success in obtaining tax refunds for eligible businesses.

Benefits of ERC

By applying for ERC, businesses can potentially receive substantial refunds. Retaining employees can help avoid the costs associated with hiring and training new staff, ensuring stability and growth for the organization.

Obtaining ERC for Cash Flow

Applying for the Employee Retention Credit (ERC) is a crucial step for businesses seeking financial relief amid the challenges of the COVID-19 pandemic. By understanding the eligibility criteria, following the application process, and seeking assistance from experts like Innovation Refunds, businesses can leverage ERC to ensure stability and growth in the future. Don't miss the opportunity to claim the ERC and secure financial support for your business.

Frequently Asked Questions


Can businesses claim both ERC and PPP benefits?


Yes, eligible businesses can claim both ERC and Paycheck Protection Program (PPP) benefits.


Are pastors' wages eligible for ERC?


No, pastors’ wages are not eligible for ERC, but qualified non-clergy employee wages can be claimed.


Can essential businesses qualify for ERC based on partial shutdowns?


Yes, essential businesses can still qualify for ERC based on partial shutdowns.