Today we look at company named ERC Today. We are going to look at the ERC Today Reviews that are to be foundonline to try to determine if this is your best ERC alternative out there? Do they match up against our #1 recommendation? Let´s look into it!

Company: ERC Today

Website: www.erctoday.com

Owner: Stephen Swanick (CEO)

Who is it for: business owners

Warning:

Before we continue we just want to mention something important. Please make sure to ALWAYS do your own research and to compare different alternatives before making any decisions when it comes to financial services.

Discover our #1 ERC Solution here

Ok, with that being said, let´s continue with the ERC Today review!

Intro and what is ERC Today?

Are you a business owner who faced unprecedented challenges during the COVID-19 pandemic? Did you struggle to retain your valued employees while navigating through financial uncertainties? If so, you’re not alone. Many businesses like yours encountered this exact pain point during these trying times.

But don’t worry, as we have some good news that can ease those worries and even make you smile. Meet ERC Today, your ultimate partner in maximizing refunds and claiming the Employee Retention Credit (ERC) – a lifeline for businesses impacted by the pandemic.

Before we delve into how ERC Today can come to your rescue, let’s understand the Employee Retention Credit. The Employee Retention Credit (ERC) is a tax credit that can be refunded to assist businesses that faced challenges in maintaining their workforce during the economic downturn provoked by the COVID-19 crisis.

If you keep employees on your payroll during the pandemic, you might be eligible for this credit, and that’s where ERC Today steps in to make the process hassle-free.

We don’t need to tell you how tough it was to keep your business aimless while caring for your employees’ well-being during the pandemic. Every dollar matters and that’s precisely why the ERC can be a game-changer for your company.

ERC Today comprehends the importance of credit for businesses like yours, and their primary goal is to ensure that you gain the utmost advantages from it. Their specialized tax services focus on helping you claim the ERC efficiently and effectively.

In this review, we’ll walk you through the services and features offered by ERC Today, their streamlined application process, success stories from satisfied clients, and even alternative options, so you can make an informed decision about partnering with ERC Today to maximize your refund.

Ready to discover how ERC Today can relieve the stress of claiming the ERC? Let’s embark on this journey together, and by the end, you’ll be equipped with the knowledge to make the most of this invaluable tax credit.

How ERC Today Works?

ERC Today is there to assist you at every stage of claiming the Employee Retention Credit (ERC) and ensuring you get the most out of your refunds. Their efficient and user-friendly process ensures you get the most out of the ERC without hassle.

First and foremost, ERC Today starts with an Eligibility Analysis. Their expert team carefully reviews your business’s payroll records, financial data, and other essential information to determine if you qualify for the ERC. This thorough analysis ensures you clearly understand your eligibility status, setting the stage for a successful claim.

Once eligibility is confirmed, ERC Today moves on to the Data Submission and Credit Calculation phase. Here, they make the process straightforward. They collect all the necessary information from you and use their expertise to accurately calculate the potential credit amount. They aim to ensure that every eligible expense is considered so you receive the maximum benefit from the ERC program.

But what if you still need to claim the ERC in previous tax filings? Don’t worry – ERC Today has you covered. They are well-versed in Assisting with Amending Returns, helping you include the ERC claim properly in your previous filings. This way, you won’t miss out on the credit you rightfully deserve.

At ERC Today, getting paid is their priority. Their team works tirelessly to ensure you receive the maximum benefit you’re entitled to. Their extensive knowledge of the ERC program allows them to navigate the complexities of the process, guaranteeing you get the refund you need to keep your business thriving.

Transparency and fairness are at the core of ERC Today’s values. They understand your concerns about hidden fees and upfront costs. Rest assured, with ERC Today. You only pay when you receive your ERC funds. The way they’ve structured their fees aims to be one of the most competitive in the market, ensuring that businesses of all sizes can access and afford their services.

ERC Today Services

ERC Today is your dedicated partner in navigating the complexities of claiming the Employee Retention Credit (ERC). They offer a range of services that simplify the process, making it easy to maximize your refund and focus on what matters most – running your business.

Gathering Documentation

ERC Today understands that dealing with paperwork can be overwhelming. That’s why they take care of the tedious task of Gathering Documentation on your behalf. From payroll records to financial data, they ensure all the necessary paperwork is organized and ready for the ERC claim process. You won’t have to worry about sifting through stacks of papers; ERC Today has got you covered!

Preparing and Filing the Claim

Preparing and filing an ERC claim requires expertise and attention to detail. Fortunately, ERC Today’s team of experts handles this process seamlessly. They will assist you throughout the process, ensuring all the necessary information is correctly filled out in the claim forms. With their help, you can rest assured that your ERC claim is safe, leaving you free to focus on running your business.

Providing Customer Support

At ERC Today, they understand that you might have questions or need assistance along the way. That’s why they provide top-notch Customer Support to address all your concerns. Suppose you need clarification regarding eligibility criteria or assistance with the claim process.

In that case, you can easily reach out to ERC Today’s helpful and well-informed customer support team through phone or email. They are always available to provide the clarification and guidance you require. You can count on them to be there whenever you need help.

Overall, ERC Today offers comprehensive services that streamline the ERC claim process for you. From gathering all the necessary documentation to preparing and filing the claim and providing exceptional customer support, they ensure that you have a smooth and successful experience.

With ERC Today by your side, claiming the Employee Retention Credit becomes a stress-free and rewarding journey.

ERC Today Features

ERC Today goes above and beyond to make your experience claiming the Employee Retention Credit (ERC) a breeze. They offer a range of features that not only simplify the process but also maximize your refunds – here’s how:

Maximizing ERC Refunds

When getting the most out of the ERC, ERC Today is the expert you need. Their dedicated team of professionals knows the ins and outs of the program, ensuring that you receive every penny you’re eligible for. With ERC Today, you can rest assured that your refund will be maximized to its fullest potential.

Streamlined Application Process

Say goodbye to complicated paperwork and long hours spent on ERC claim applications. ERC Today streamlines the entire process into four easy steps. They make it straightforward, from eligibility assessment to filing the claim. Get ready to reclaim your time with ERC Today’s streamlined application process.

Easy Tax Filing with Ready-to-File Forms

Filing taxes can be daunting, but ERC Today has you covered. They provide ready-to-file forms specifically tailored for claiming the ERC tax credit. No more deciphering complex tax forms; ERC Today makes the filing process hassle-free.

Access to ERC Resources

Knowledge is power, and ERC Today empowers you with a wealth of ERC Resources. From informative videos to frequently asked questions (FAQs) and a regularly updated company blog, you’ll find all the information you need to navigate the ERC program confidently.

Secure Online Portal for Documentation Upload

Gone are the days of physical document submission. ERC Today offers a secure online portal where you can conveniently upload all your required documentation. You can be confident that ERC Today’s secure portal protects your sensitive data.

Free Consultation for Eligibility Assessment

Do you qualify for the ERC? ERC Today offers a complimentary Eligibility Assessment. Their team will review your case and provide a free consultation to determine your eligibility and potential refund amount. Get the peace of mind you deserve with ERC Today’s free consultation service.

In short, ERC Today’s impressive features make them the ultimate partner for claiming Employee Retention Credit. From maximizing your refunds to providing valuable resources and a user-friendly application process, ERC Today has your back at every step.

ERC Today’s Fee Structure

Worried about the costs associated with claiming the Employee Retention Credit (ERC)? ERC Today offers a fee structure that is both transparent and fair, ensuring that you only pay when you receive your ERC funds. Let’s take a closer look at how it works:

No Up-Front Cost

The best part about partnering with ERC Today is that you won’t encounter any up-front costs. You don’t need to worry about paying anything out of pocket to begin the process. ERC Today is committed to helping you first, and its services are designed to be accessible to businesses of all sizes.

Graduated Fee Scale based on ERC Credit Deposits

ERC Today’s fee structure is designed with your best interests in mind, offering a Graduated Fee Scale based on your ERC credit deposit:

• For ERC credit deposits from $0.00 to $499,999.99, the fee is 15.0%.
• If your ERC credit deposit falls between $500,000.00 and $999,999.99, the fee is 10.0%.
• For ERC credit deposits of $1,000,000.00 and higher, the fee is 7.5%.

This Graduated Fee Scale ensures that the larger your credit deposit, the smaller the percentage fee, allowing you to keep more of your hard-earned refund.

Payment Upon Success

ERC Today stands by its commitment to your success. They only get paid when you receive your ERC funds. You can rest assured that ERC Today’s interests align with yours – they work tirelessly to ensure you get the maximum benefit from the ERC program before they receive any compensation.

ERC Today’s fee structure is designed to be transparent, fair, and aligned with your success. With no up-front costs, a Graduated Fee Scale that benefits you as your credit deposit grows, and payment only upon success, ERC Today goes the extra mile to make claiming the ERC as beneficial and stress-free as possible.

ERC Today Customer Service

At ERC Today, exceptional customer service is at the heart of their mission. They go the extra mile to assist you in claiming the Employee Retention Credit (ERC). Here are the ways ERC Today provides top-notch customer support:

Dedicated Support Representative

When you work with ERC Today, you get a Dedicated Support Representative assigned to your case. This friendly expert is your go-to person for any questions or concerns. They will provide step-by-step guidance, ensuring you feel confident and well-supported throughout claiming the ERC.

Videos & Tutorials

Still, trying to figure out certain aspects of the ERC program? ERC Today has you covered with helpful Videos & Tutorials. These easy-to-understand resources provide valuable insights, helping you understand the process and navigate complexities. With ERC Today’s videos and tutorials, you can learn quickly and gain the necessary knowledge.

Company Blog

Stay informed with ERC Today’s regularly updated Company Blog. Packed with useful tips, news, and updates related to the ERC program. Their blog is a valuable resource. Whether it’s the latest changes in eligibility requirements or useful advice on maximizing your refund, ERC Today’s blog keeps you in the know.

Social Media

ERC Today stays connected with you through various Social Media platforms. Follow them on Facebook, Instagram, LinkedIn, and YouTube for more helpful content. ERC Today’s social media presence keeps you engaged and informed, from quick tips to success stories and important updates.

ERC Today’s commitment to outstanding customer service sets them apart. With a dedicated support representative, informative videos, a regularly updated blog, and active social media engagement, ERC Today ensures you have all the resources and assistance you need to make the most of the ERC program.

ERC Today Reviews & Success Stories

Google Reviews Rating

ERC Today has earned the trust and admiration of businesses they have assisted, as reflected in their excellent Google Reviews Rating. With an impressive 4.9 out of 5 stars based on 75 reviews, ERC Today’s track record speaks for itself. These reviews highlight the positive experiences of satisfied customers who successfully claimed the Employee Retention Credit with the help of ERC Today.

Highlighting Tax Credit Success Stories

ERC Today proudly showcases its Tax Credit Success Stories from real businesses on its website portal. These inspiring stories shed light on how ERC Today’s expertise and dedication have successfully helped various companies claim their refunds. Reading these success stories can reassure and motivate businesses considering ERC Today’s services.

In short, ERC Today’s online reviews and success stories testify to their commitment to exceptional service and successful outcomes. With a top-notch Google Reviews Rating and real-life success stories showcased on their website, ERC Today’s reputation and track record gives you added confidence in their ability to help you claim the Employee Retention Credit successfully.

Pros and Cons of Using ERC Today

Pros

• Good Reputation
• Streamlined and User-Friendly Process
• Customer Support

Cons

• Higher Fees for Deposits under $1 million
• Limitations with Complex Claims

Is ERC Today Legit?

When you consider whether ERC Today is legitimate, it’s important to consider specific things related to your business. ERC Today can be a trustworthy choice for businesses that can easily claim Employee Retention Credit (ERC).

They have a good reputation and make things simple for many. But before you decide, check if your business qualifies for the ERC and how complicated your claim is. ERC Today might be a great option if you qualify and have a simple claim.

However, if your claim is complex or you need bookkeeping and other tax-related services, you should consider other alternatives. Consider your business’s unique situation before deciding if ERC Today fits you best.

Alternatives to ERC Today

If you’re considering options beyond ERC Today, some great alternatives exist. Let’s take a look:

Doing it yourself

You can attempt to claim the Employee Retention Credit (ERC) independently. However, remember that this might require understanding tax regulations and detailed documentation.

Hiring a Tax Professional

Hiring a Tax Professional, like a knowledgeable accountant or tax advisor, can be smart. They have expertise in handling tax matters and can guide you through the ERC claim process.

Other Companies Providing ERC and Related Services

Suppose you need more than just ERC support. In that case, there are companies like Omega Accounting Solutions and Lendio that have got your back. They offer ERC services, bookkeeping, SBA loans, HRCTC, tax preparation, and fractional CFO services. It’s like getting a complete financial support package!

So, when exploring your options, consider what fits your business needs best. Whether it’s going solo, getting a tax pro, or choosing a company with a bundle of financial services, make the choice that suits you.

Tips for Choosing an ERC Claim Assistance Company

When searching for the right ERC claim assistance company, keep these essential factors in mind:

Reputation: Look for a company with a Good Reputation, like ERC Today, to ensure reliability and trustworthiness.

Fees: Consider the fee structure and find a company that offers fair and transparent pricing. ERC Today’s Graduated Fee Scale is a good example; larger credits mean smaller fees.

Services: Evaluate the range of Services offered. If you need more than ERC support, consider companies like Omega Accounting Solutions or Lendio, offering comprehensive financial services.

Customer Support: Excellent Customer Support is essential. Choose a company that provides dedicated assistance throughout your ERC claim journey.

Remember, these factors play a significant role in making the best choice for your business’s needs.

The Eligibility Requirements for the ERC

In order to permit the Employee Retention Credit (ERC), businesses must meet certain criteria:

Qualified Wages during the Covered Period

ERC eligibility involves paying Qualified Wages to employees during the designated Covered Period. Make sure your payroll records align with the defined time frame.

Significant Reduction in Gross Receipts

Businesses need to demonstrate a Significant Reduction in Gross Receipts. This reduction shows the impact of the pandemic on your business’s revenue during the Covered Period.

Maintenance of Employment Levels

ERC eligibility also relies on maintaining certain employment levels during the Covered Period. Ensure that you meet the ERC guidelines’ employee retention criteria.

Understanding and meeting these eligibility requirements allows your business to pursue the Employee Retention Credit confidently.

Documentation Required for ERC Claims

When claiming the Employee Retention Credit (ERC), you need to make sure you have specific documentation ready:

PPP Loan Application and Forgiveness Details: Suppose your business received a Paycheck Protection Program (PPP) loan or forgiveness. In that case, you must provide relevant information from the application process.

Form 941/941-X – Employer’s Quarterly Federal Tax Return: You need to include this crucial form 941/941-X, which gives an overview of your business’s federal tax income and withheld payroll taxes for each quarter in 2020 and 2021.

Detailed Payroll Reports: Be sure to include comprehensive reports containing essential details such as employee names, payment dates, and gross wages.

Basic Business Information: You’ll want to provide an overview of your business, including its description, location, and employee details, such as work hours and reduced schedules.

Having these documents ready ensures a smooth and successful ERC claim process for your business.

Timeline for Processing ERC Claims

When you submit your ERC claim, keep in mind the following timeline considerations:

The Average Processing Time for ERC claims is 6 to 8 weeks after filing. However, remember that the processing duration can vary due to several factors, such as the complication of your claim and the number of claims under review.

Due to a high volume of claims, there might be a Waiting Period before your claim is processed. In the past, ERC refunds were typically processed within four to six weeks. However, with increased claim volumes, processing times may be longer.

Patience during this waiting period is essential. Rest assured that ERC Today and other reputable claim assistance companies work diligently to process your claim as quickly as possible.

Challenges of Claiming the ERC

While claiming the Employee Retention Credit (ERC), you might encounter the following challenges:

Complex Eligibility Requirements: The ERC has Complex Eligibility Requirements that businesses must meet to qualify. Understanding and fulfilling these requirements can take time and effort.

Extensive Documentation Requirements: Claiming the ERC involves gathering Extensive Documentation, such as payroll records and tax forms. Ensuring all necessary documents are accurate and complete can be time-consuming.

Long Processing Time: Due to many claims, the Processing Time for ERC refunds can be longer than expected. Patience is important during this waiting period.

Despite these challenges, don’t be discouraged. With ERC Today’s assistance, you can navigate these hurdles and secure the Employee Retention Credit your business deserves.

FAQs

What does ERC stand for?

The abbreviation ERC stands for Employee Retention Credit. It is a valuable tax credit that businesses can claim for retaining their employees during the challenging times of the COVID-19 pandemic. The ERC is a refundable credit, ensuring eligible businesses can receive the credit even if they do not owe taxes.

How can I check the status of my ERC claim?

To check your ERC refund status, the recommended approach is to contact the IRS at 1-877-777-4778. However, due to the current backlog of ERC claims, there might be limitations in providing immediate status updates. Processing times may take several months, so patience is necessary.

Is ERC Today a worthwhile option?

Whether ERC Today is right for your business depends on your unique situation. If you have a simple ERC claim, they can greatly help you. But if your claim is more complex, it might be better to file it on your own to see if ERC Today’s service fee is worth the benefits they offer. Remember to examine your specific needs before making a decision.

Conclusion

Ultimately, ERC Today differentiates itself as a reliable and skilled supporter in aiding businesses to obtain the Employee Retention Credit (ERC). Through a unified application process, ensuring maximum refunds, and dedicated customer support, they offer a valuable solution for eligible businesses seeking to claim the credit rightfully.

However, before finalizing a decision, it is crucial to assess your specific requirements, considering factors such as complexity and the broader range of services needed. If ERC Today aligns with your business needs, their expertise can simplify the ERC claim process.

Nevertheless, exploring options like hiring a tax professional or investigating companies that provide extra financial services can lead you to the right choice for your business needs.

Discover our #1 Recommended ERC Solution

I hope you found this short post about ERC today and the reviews we found to be helpful and that you now have a better idea on what it is. If you have used any of their services then please share your experience in the comment section below as it can help others!

I wish you success!

Michael, founder of Gold Retired

Running a small business is never easy, and in today’s competitive landscape, maximizing your cash flow can be the major difference between success and in failure. That’s why taking advantage of every opportunity available to you is so important. One such option is the Employee Retention Credit (ERC), created by the IRS as part of the CARES Act to help provide relief during difficult times like we are currently experiencing. You might ask yourself “does my company qualify for ERC?” 

In this blog post, we’ll discuss what qualifications are needed for ERC and how your company can benefit from participating in these credits. Read on to learn more!

P.S.

Discover our #1 Recommended ERC Solution here

The Basics of the Employee Retention Credit

The Purpose of the ERC

The Employee Retention Credit is a tax credit available to businesses that have retained employees during the COVID-19 pandemic. The purpose of the ERC is to encourage businesses to retain employees by providing them with a tax credit. This credit can offset payroll taxes, such as Social Security and Medicare.

The ERC is intended to help businesses keep employees on the payroll, even if they are not actively working. This includes employees who have been furloughed, are working reduced hours, or cannot work due to quarantine or illness.

Eligibility Criteria Overview

A business must meet certain criteria to be eligible for the Employee Retention Credit. First, the business must have experienced a significant decline in gross receipts. Specifically, the business must have had a 50% decline in gross receipts compared to the quarter year. Once a business has met this threshold, it can claim the ERC for the quarter. 

Alternatively, if a business was forced to shut down completely due to a COVID-19-related government shutdown order, it can claim the ERC for the entire period the shutdown order was in place.

Additionally, businesses must maintain their employee headcount and pay rates to be eligible for the ERC. If a business has more than 100 employees, it can only claim the credit for employees who are not working due to COVID-19-related reasons. If a business has less than 100 employees, it can claim credit for all employees, regardless of why they are not working.

How to Determine Significant Decline in Gross Receipts

Defining Gross Receipts:

Gross receipts include all revenue received or earned by a business before deducting any expenses. This includes sales, services, interest, dividends, and other income. It’s essential to note that any grants or subsidies received from the government, such as Paycheck Protection Program (PPP) loans or Economic Injury Disaster Loans (EIDL) advances, are not considered gross receipts but may affect your gross receipts calculations for the ERC. 

Calculation Methods:

There are two primary methods for calculating a significant decline in gross receipts. The first method compares current-year gross receipts to the previous year, and the second compares current-quarter gross receipts to the same quarter in the previous year. 

Method 1: Comparing Current-Year Gross Receipts to the Previous Year: 

To use method one, a business must show at least a 20% decline in gross receipts in any calendar quarter of a year. Alternatively, the business did not experience a quarter with a 20% decline. In that case, it can also qualify by demonstrating a 50% decline in gross receipts during the second half of 2020 compared to the same period in 2019. 

Method 2: Comparing Current-Quarter Gross Receipts to the Same Quarter in the Previous Year: 

To use method two, a business must show at least a 20% decline in gross receipts in the current calendar quarter of a year. If they achieve that, they are eligible for the ERC in the current and subsequent quarters. However, a business can only switch to Method 1 if they show a significant decline in gross receipts using Method 2 in a specific quarter of 2020. 

Additional Qualifying Factors:

Aside from a significant decline in gross receipts, other qualifying factors for ERC eligibility include having operations fully or partially suspended due to COVID-19-related government orders or a significant decline in gross receipts. Additionally, businesses must have fewer than 500 employees and have yet to receive a PPP loan after December 31, 2020, to be eligible for the ERC. 

Special Considerations for Different Business Types

Small Businesses

Small businesses often operate on a tight budget, making it essential to keep overhead costs as low as possible. As a result, they may face significant challenges when hiring skilled employees, as most need more resources to offer top-level salaries. The emphasis should be on finding the right balance between keeping costs low and providing competitive pay. Small businesses may also need help to maintain compliance with regulatory requirements, primarily when dealing with taxes. Finding a reliable accounting or finance expert who can guide your organization on the right path and ensure adherence is essential.

Small businesses should leverage the latest technology, such as cloud computing, automated software systems, and other affordable business tools, to streamline their operations. Adopting such technologies and automating various tasks frees up valuable resources and time, allowing small businesses to focus on innovation and growth.

Medium and Large Businesses

Medium and large businesses have vastly different considerations from their small business counterparts, the most significant being scaling their operations. These organizations must implement effective growth strategies to stay within their operations and stay caught up in their competition. They must also ensure that policies and procedures are in place to monitor operations and identify vulnerabilities before they escalate, preventing issues from impacting the wider system.

Medium and large companies must also maintain flexibility with an ever-changing market, workforce, and evolving consumer demands. The onus falls on leaders to provide ongoing training, encouraging personal and professional growth to meet these challenges. Leaders must encourage a strong company culture, which can be a critical motivator for employees.

How to Determine Qualified Wages

Firstly, what exactly are qualified wages? Essentially, they’re wages paid by employers to their employees that are eligible for tax credits. Most commonly, qualified wages are related to the employee retention tax credit (ERTC) — a credit that was introduced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provides economic relief to businesses affected by the COVID-19 pandemic. 

The qualified wages a business can claim for the ERTC can be, at most, $10,000 per employee per quarter. There are also limitations on how much an employee’s wages can be counted towards the credit. In summary, qualified wages represent taxable compensation paid to employees aligned with the criteria set out by tax credits.

Now, let’s discuss how to calculate qualified wages. The IRS requires specific computation methods to determine qualified wages for the ERTC. The credit amount equals 50% of up to $10,000 per employee of qualified wages paid between March 13, 2020, and December 31, 2021. The computation method differs for businesses that employ more than 500 full-time employees and those that don’t. 

For businesses with more than 500 full-time employees, the calculation is based on wages paid to employees not providing services due to a full or partial suspension of business activities or a significant decline in gross receipts. For businesses with fewer than 500 employees, the calculation is based on wages paid to all employees, regardless of whether they currently provide services.

It’s worth knowing that qualified wages are also determined based on the type of health insurance employers provide. The premium can count towards qualified wages if the employer provides a group health plan. Employees enrolled in employer-sponsored health plans can also have their wages counted if the amount of the deduction from their employee pay equals or exceeds the employer’s cost of coverage. 

The more complicated areas of qualified wage calculations relate to eligibility criteria. An extensive range of conditions must be met for an employee’s wages to count as qualified wages and be eligible for tax credits. Specifically, these include but aren’t limited to:

• Properly documenting the amount of qualified wages paid during the identified period
• Meeting specific geographical requirements for the employees
• Documenting a significant decline in gross receipts compared to the same period last year
• Documenting full or partial suspension of operations due to government orders relating to COVID-19

Interaction of ERC with Other Relief Programs

ERC and Paycheck Protection Program (PPP)

The PPP was designed to provide businesses with a forgivable loan. On the other hand, the ERC is a tax credit designed to incentivize businesses to retain their employees. The PPP was initially designed to cover only a few months of payroll expenses but has since been extended to 24 weeks. Businesses that received PPP loans were also eligible for ERC benefits, but there are specific guidelines to follow. If a company uses the PPP loan to pay eligible payroll expenses, it cannot use the same expenses to claim the ERC. However, any payroll expenses not covered by the PPP can be claimed as ERC. This interplay between the programs can be confusing, but taking the time to understand their specifics can substantially benefit businesses.

ERC and other Federal Credits 

Apart from the PPP, businesses can take advantage of several other federal relief programs to maximize their benefits. These programs include the Families First Coronavirus Response Act (FFCRA), which provides paid leave to employees affected by COVID-19 and the Work Opportunity Tax Credit (WOTC). These programs work uniquely with the ERC, with businesses getting the benefit of claiming both programs if they meet the criteria. For instance, if a business hired a new employee who qualified for the WOTC program and retained this employee during the qualifying period, they would be eligible for WOTS and ERC credit for the employee.

Interaction with Local Relief Programs

State and local governments have also rolled out their relief programs in response to the pandemic. These programs range from grants to deferral of taxes. The benefit of these programs is that they add to the already existing federal benefits. For instance, a business that received a grant from the state government to cover payroll expenses could still claim ERC credit for any expenses not covered.

Maximize your Benefits

To maximize your benefits, working with your accountant, legal advisor, or tax professional is essential. These professionals understand the specific guidelines and can help you navigate the complexities. Hiring a professional to manage the various programs can also save you time and money in the long term.

Calculating the ERC

The ERC represents the energy efficiency of a building and is calculated based on the amount of energy used to heat, ventilate, and cool a structure. There are several components to the calculation, including the square footage of the building, the number of rooms, and the type of equipment used to heat and cool the space. To find the maximum ERC for a building, one must start by determining the area of the building. This can be done by measuring the length and width of each room and multiplying them to find the total square footage.

Once the area of the building has been determined, the next step is to identify the energy sources used to heat and cool the building. Various factors go into determining the energy consumption of a building, including the type of HVAC system used, the age and efficiency of the equipment, and the number of people living or working in the building. Energy consumption devices such as lighting and appliances can also impact the ERC.

After identifying all the factors that contribute to energy consumption in a building, the ERC is calculated by dividing the total energy used by the square footage of the building. The ERC measurement is usually expressed in BTU or kilowatts per square foot per year.

Limitations and Caps on the ERC

While calculating the ERC can help identify energy inefficiencies, it is crucial to consider this metric’s limitations. The ERC only considers the energy used to heat, cool, and ventilate a structure and does not consider other factors that may impact energy efficiency, such as insulation levels, excessive lighting, or water usage. Therefore, it is essential to supplement this measurement with other sustainability metrics to ensure maximum energy efficiency.

Moreover, some states and local governments have established caps and limits on the ERC for specific buildings. These limitations and caps may vary based on the type of building, location, and energy generation source. Some utility providers even offer rebates or incentives to encourage customers to improve their ERC. Therefore, it is essential to calculate the ERC and be aware of relevant local and state regulations.

Application Process for the ERC

1. Go Through the Documentation Checklist: Before diving into the ERC application process, you’ll need to gather all of the necessary documentation. This includes copies of your company’s tax returns, payroll records, and financial statements. You may also need to provide documentation to show how the pandemic impacted your business. The best course of action is to go through the documentation checklist provided by the IRS and ensure that you have everything you need. Documentation can take time, but it’s the foundation of a successful ERC claim.
2. File Your Claim: Once you have all your documentation, it’s time to file your claim for the ERC. You can do this using Form 941, which must be filed quarterly. You’ll need to complete a special ERC worksheet to claim the credit, and you’ll also need to attach any other necessary documentation. Taking time with this process is important to ensure you have completed everything correctly.
3. Monitor Your Claim: After you have submitted your claim, it’s important to monitor the status of it. You can check your IRS account or contact your tax advisor. The IRS is currently processing ERC claims within 3 – 6 months, but it’s important to follow up if you have any questions or concerns.
4. File Your Amended 941s: If you’re claiming the ERC retroactively— meaning you’re claiming for a previous quarter—you’ll need to file amended Form 941s for those quarters. This process can be a bit more complex, so working closely with your tax advisor is important to ensure everything is filed correctly. The IRS has provided specific guidance on handling retroactive ERC claims, so consult with your advisor on this.
5. Keep Detailed Records: It’s critical to keep detailed records throughout the application process. This includes copies of all of your documentation and any communication you have with the IRS or your tax advisor. Having detailed records will make the process smoother and may help you in the case of any disputes.

Understanding How the ERC is Paid

Refunds vs. Credits

One question that often comes up about the ERC is whether it’s a refund or a credit. The answer is that it’s both. The ERC is a tax credit, which means it can reduce the taxes a business owes. However, if the credit is larger than the business’s tax liability, the excess amount can be refunded to the business. This means that the ERC can offset the cost of payroll and provide a much-needed infusion of cash for struggling businesses.

Qualifying for the ERC

To qualify for the ERC, a business must meet certain criteria. The credit is only available to that employers whos experienced a full or partial suspension of operations due to government orders (usually at least 50%) compared to the same quarter. The credit is also available to businesses that started operations in 2020 or 2021, provided they meet certain eligibility requirements.

Calculating the ERC

The ERC is calculated per-employee basis and equals 50% of qualified wages paid during the eligible period. For 2020, the maximum credit amount is $5,000 per employee; for 2021, the maximum credit is $7,000 per quarter. The eligible wages can include salary and benefits, such as health insurance premiums.

Timeline for Receiving the ERC

The timeline for receiving the ERC can vary depending on the business’s specific circumstances. Generally, the credit can be claimed on the business’s quarterly employment tax returns. However, there are also provisions for claiming the credit on an amended return or applying for an advance payment. The IRS has provided detailed guidance on how to claim and calculate the ERC, and businesses must follow these guidelines carefully to make sure that they receive the full amount of the credit.

Tax Implications of the ERC

Impact on Tax Deductions:

The ERC is a refundable tax credit that businesses can claim if they meet certain eligibility requirements. The amount of the credit is equal to 70% of the first $10,000 in qualified wages paid per employee during certain quarters of 2020 and 2021. Before claiming the credit, businesses should understand its impact on tax deductions. 

The qualified wages used to calculate the ERC cannot be used for other tax credits or deductions, such as the Research and Development Tax Credit or Work Opportunity Tax Credit. Additionally, expenses used to calculate the ERC cannot be used for the Paycheck Protection Program (PPP) loan forgiveness. 

Reporting the ERC on Tax Filings:

Businesses that claim the ERC must report it on their tax filings accurately. They should also report the amount of the ERC claimed on their Payroll Support Program application and the corresponding payroll Form 941. 

Moreover, businesses should maintain adequate documentation to support their ERC claims, including the qualified wages used to calculate the ERC and the eligibility criteria used to determine the credit. They should keep the documentation for at least four years after the due date of the tax return or the date of filing the return, whichever is later.

Record Keeping for ERC Compliance

Necessary Documentation:

Under the ERC Act, there are specific requirements for electronic record keeping. Businesses are required to maintain electronic records that are accurate, accessible, and reliable to ensure legal compliance. Necessary documentation includes signed contracts, agreements, invoices, and receipts.

However, it’s important to note that not all records you keep need to be electronic. You may also keep records in paper form, provided that these records are scanned or converted electronically for compliance. Additionally, records must be easily retrievable, tamper-proof, and secured from unauthorized access.

Recommended Record Retention Period:

The recommended retention period for electronic records varies based on the document or record you’re keeping. Business records that pertain to tax reporting, SEC filings, and other financial records should be kept for at least seven years. Employee records, such as employment contracts and payroll-related documents, should be retained for at least three years after termination.

Other records not specifically covered by ERC requirements may vary in their recommended retention period. Following recommendations from other regulatory bodies, industry experts, or legal advisors is best to ensure compliance.

Invest in Technological Solutions:

Keeping electronic records can be challenging and requires extensive storage space. That’s why investing in technological solutions can help make this process more manageable. Cloud-based storage, for example, allows you to store your records securely and provides a convenient means of accessing these records from anywhere at any time.. This system helps ensure you retain all necessary records while also destroying no longer required records.

Common Mistakes to Avoid When Applying for the ERC

Misinterpretation of Eligibility Criteria

One of the most common mistakes businesses make when applying for the ERC is needing to be more accurate with the eligibility criteria. The eligibility criteria can be complex, and businesses should take the time to read the guidelines carefully to make sure they meet all the requirements. Some common mistakes include failing to meet the gross receipts test, not understanding the definition of a full or partial suspension of operation, or not correctly identifying and calculating qualified wages.

Errors in Calculating Qualified Wages

Calculating qualified wages is a critical step in applying for the ERC. Businesses must include all eligible wages and withholdings and exclude any ineligible and qualified wages used to claim other tax credits. A common mistake is not identifying and calculating eligible health care costs, which can include both the cost of employer-sponsored health coverage and qualified health plan expenses.

Incomplete Documentation

Businesses must provide all necessary documentation when applying for the ERC. A common mistake is submitting incomplete documentation, which can delay the application process. Documentation must be accurate and include all necessary information, such as payroll records, financial statements, bank statements, and tax returns. Businesses should ensure that all documentation is organized, accurate, and up-to-date.

Failing to Maximize Eligible Credits

Another common mistake businesses make when applying for the ERC is failing to maximize eligible credits. The ERC can be a complex credit, and businesses may need to understand all the provisions to maximize eligibility fully. For example, some businesses may need to realize that they can retroactively claim credit for certain quarters in 2020 when they did not apply for a Paycheck Protection Loan.

Missing Deadlines

Meeting deadlines is a common mistake businesses make when applying for the ERC. The ERC is a time-sensitive credit, and businesses should be aware of the application deadlines to maximize eligibility. Businesses should apply as soon as possible to claim the maximum credit for each quarter in 2021. A timely deadline can result in a loss of potential credits.

Frequently Asked Questions

Q: How long does it take to receive the ERC? 

A: The time depends on how quickly a business submits its application and provides all necessary documentation. Generally, businesses should expect to receive the credit within eight weeks of submitting their application. 

Q: Is there a limit to how much a business can claim for the ERC? 

A: Yes, businesses are capped at a total of $7,000 per quarter in 2021 for the ERC. However, this limit will increase depending on factors such as inflation and wage changes. 

Q: Can a business claim the ERC retroactively? 

A: Yes, businesses may be able to claim the ERC retroactively for certain quarters in 2020, even if they did not apply for a Paycheck Protection Loan. Businesses should review the applicable rules and regulations to determine their eligibility for retroactive credits. 

Q: Is there any additional assistance available? 

A: Businesses can seek professional tax advisors or CPAs to help them navigate the ERC process. Professional advisors can help businesses maximize their eligibility for credit and ensure they remain compliant with all applicable rules and regulations. Many states also have programs available to assist businesses in applying for the ERC. Businesses should contact local government offices for more information about these assistance options. 

Q: What happens if a business makes a mistake on its ERC application? 

A: If a business makes an error on its ERC application, it should contact the IRS and request an amended form. This will ensure that the business complies with all applicable rules and regulations. Additionally, businesses may also be subject to penalties if they do not correct any errors promptly. Therefore, reviewing all applications carefully and ensuring everything is accurate before submitting is important. 

Q: Is the ERC specific to certain business types? 

A: Generally speaking, any type of business that meets the criteria for qualified wages is eligible for the ERC. This includes small and large businesses and sole proprietorships, corporations, partnerships, and LLCs. However, certain industries may have additional requirements or restrictions on ERC eligibility. Businesses should consult a professional tax advisor to meet all applicable rules and regulations. 

Q: Is the ERC available on a state level? 

A: Many states have adopted their versions of the ERC, usually mirroring the IRS guidelines for federal credits. Businesses should contact their local government offices to find out more information on specific state programs that may be available. However, it is important to note that state ERCs may have different qualifications and restrictions than federal credit, so businesses need to research these differences before applying. 

Q: Are there any other tax benefits associated with the ERC? 

A: Businesses may be eligible for other tax credits or deductions when they claim the ERC. Depending on their circumstances, businesses can take advantage of these additional benefits to reduce their overall tax liability. Businesses should consult with a professional tax advisor to ensure they are taking full advantage of all possible tax breaks associated with the ERC. 

Conclusion

The Employee Retention Credit (ERC) is a great tool for small businesses looking to save money during difficult times. To qualify, your business must meet certain criteria and be impacted by COVID-19 in some way. With the right preparation, you can take advantage of this credit and save money on payroll taxes today. 

Discover our #1 Recommended ERC Solution here

I hope you found this short article about the question “Does my company qualify for ERC” to be helpful? Please share your own experience in the comment section!

I wish you success!

Michael, founder of Gold Retired

In this review article, we address the burning concern on everyone’s mind: “Is Innovation Refunds a Scam?” Rest assured, we’ve got you covered. Are you a small or medium-sized business struggling to navigate the complex tax codes and claim the Employee Retention Credit (ERC) amidst the COVID-19 pandemic? Then this is probably going to be interesting for you.

Innovation Refunds, is a company that is specializing in ERC claims. With a team of experienced specialists and a 100% satisfaction guarantee, Innovation Refunds aims to help businesses like yours secure the tax credits they deserve. DOes these claims apply to reality as well? Let’s delve into their services, reputation, and the ultimate verdict on their legitimacy!

Company: Innovation Refunds

Website: www.innovationrefunds.com

Owner: Howard Makler (CEO and co-founder), Rodney Rad (President)

Who is it for: Business owners

P.S.

Before we get into this review we think it´s important to mention that you should always strive for the best deal possible. Please make sure to ALWAYS do your own research and to compare different alternatives before making any decision!

Discover our #1 ERC Solution here!

Ok, with that said, let´s continue with the Innovation Refunds review!

What is Innovation Refunds?

Innovation Refunds is a trusted company dedicated to assisting small and medium-sized businesses in claiming the Employee Retention Credit (ERC), a valuable tax credit designed to support businesses during the challenging times of the COVID-19 pandemic. With Innovation Refunds by your side, you can access the financial relief you need to keep your employees on the payroll and ensure your business’s stability.

Navigating the complexities of tax codes can be overwhelming, especially during unprecedented times. However, with Innovation Refunds, the process becomes seamless. They offer comprehensive services to help you gather all the necessary documentation to file an ERC claim. From start to finish, their dedicated account specialists guide you through every step, ensuring accuracy and compliance.

How does Innovation Refunds work?

Innovation Refunds has streamlined claiming the Employee Retention Credit (ERC) to make it stress-free for businesses. When you engage in their services, the first step involves thoroughly analyzing your eligibility for the ERC. This preliminary assessment ensures your business qualifies for the credit, saving you time and effort.

Once confirmed, Innovation Refunds’ dedicated account specialists will guide you through the process. They will assist you in gathering the necessary documentation required for filing the ERC claim accurately. Their expertise in navigating complex tax codes ensures that your claim adheres to all relevant regulations, minimizing the risk of errors and potential audits.

Throughout the process, Innovation Refunds maintains transparency, keeping you informed about the progress of your claim. You can rely on their team to provide regular updates and promptly address any questions or concerns.

By understanding the ERC claim process and offering a fair fee structure with a refund guarantee, Innovation Refunds demonstrates its dedication to providing excellent service to businesses seeking tax credits. With their user-friendly approach and expertise, they aim to empower businesses like yours to claim the financial relief they deserve during these challenging times.

Services Offered by Innovation Refunds

Innovation Refunds prides itself on its expertise in handling Employee Retention Credit (ERC) claims and refunds. Their singular focus on this tax credit sets them apart from competitors, ensuring they possess in-depth knowledge of the ERC regulations and requirements.

When you pick Innovation Refunds, you get help from a skilled group of experts with a strong history of successfully handling ERC claims.

Their dedicated account specialists are well-versed in the intricacies of the ERC, allowing them to provide tailored solutions that maximize your tax savings.

Navigating the ERC process independently can be daunting, especially given the constantly evolving regulations. However, Innovation Refunds’ specialization in ERC claims ensures they stay up-to-date with the latest changes, safeguarding your claim against potential issues and audits.

Unlike some competitors, Innovation Refunds is committed solely to ERC claims and refunds. While other companies might offer a broader range of tax services, accounting, or bookkeeping, Innovation Refunds provides specialized support for ERC-related matters.

This specialized approach allows Innovation Refunds to fine-tune their services, ensuring efficiency and accuracy in handling ERC claims. By concentrating solely on ERC claims, they can allocate their resources and expertise more effectively, ultimately benefiting their clients.

Innovation Refunds Features

Innovation Refunds presents many exceptional features, streamlining your ERC claim process. With no upfront payments, dedicated account specialists, and a secure portal, their user-friendly approach guarantees a hassle-free experience. Let’s delve into these remarkable features that distinguish Innovation Refunds as a leading tax credit assistance provider.

No Upfront Payments

One of the standout features of Innovation Refunds is their commitment to client convenience. Unlike other service providers, Innovation Refunds requires no upfront payments or fees. You can confidently initiate the process, knowing that you won’t have to bear any financial burden until your ERC refund is received. This no upfront payment policy reflects their dedication to ensuring a risk-free experience for their clients, especially during challenging economic times.

Free Analysis

Innovation Refunds offers businesses a valuable service by providing a free analysis of their Employee Retention Credit (ERC) eligibility. This initial assessment helps determine if your business qualifies for the credit before proceeding with the claim process. The free analysis empowers you to make an informed decision without any financial commitment. This transparency and upfront assessment set the tone for an honest and straightforward working relationship with Innovation Refunds.

Referral Program

To further enhance its client experience, Innovation Refunds has introduced a referral program. If you’re satisfied with their services and know other businesses that could benefit from ERC claims assistance, you can refer them to Innovation Refunds. In doing so, you and the referred business stand to gain, potentially receiving additional benefits or incentives. This program incentivizes client loyalty and rewards you for sharing your positive experience with others.

Secure Portal

Understanding the significance of data privacy and security, Innovation Refunds offers a secure portal for handling all sensitive information during the claim process. This portal protects your business’s confidential documents and financial details from unauthorized access. The certain portal feature instills confidence in their commitment to safeguarding your information, making you feel more at ease when collaborating with their team.

Dedicated Account Specialists

Innovation Refunds assigns dedicated account specialists to each client, ensuring personalized attention and support throughout the ERC claim process. These specialists possess in-depth knowledge of ERC claims, allowing them to cater to your business needs effectively. Having a dedicated point of contact enhances communication. It streamlines the claim process, making getting updates and promptly addressing any questions easier.

Free Audit Support

In the event of an audit, Innovation Refunds offers free audit support. This valuable feature provides additional reassurance to businesses engaging their services. You can trust their expert team to help you with any questions or worries from the IRS while they review your taxes. This level of support demonstrates their commitment to standing by their clients even after the ERC claim is filed.

Payroll & Accounting Integrations

Recognizing the importance of seamless integration, Innovation Refunds offers payroll and accounting integrations. Integrating with your existing systems will streamline the claim process and reduce administrative burden. This integration ensures accuracy and efficiency in handling the necessary documentation, making the ERC claim process more convenient for your business.

Basic Refund Calculator

Innovation Refunds provides a basic refund calculator to help businesses estimate their potential ERC benefits. This calculator is a helpful tool for understanding the possible value of claiming credit without commitment. By offering this feature, Innovation Refunds empowers businesses to make well-informed decisions regarding their financial planning and potential tax savings.

With these user-friendly features, Innovation Refunds strives to provide a seamless and efficient experience for businesses seeking to claim Employee Retention Credit. In the next section, we will explore their customer service reputation, online reviews, and fees, further evaluating their performance. Stay tuned to decide whether Innovation Refunds is the right partner to help your business secure the tax credits it deserves.

Customer Service and Reputation

Innovation Refunds takes great pride in delivering exceptional customer service to businesses seeking assistance. Their team of experienced and friendly customer service representatives is readily available to address any inquiries, concerns, or support needed throughout the ERC claim process.

From the moment you engage their services, you’ll experience their dedication to providing a seamless and personalized experience. Their prompt responses, clear communication, and willingness to go the extra mile create a sense of trust and confidence, ensuring that you feel supported and valued throughout the journey.

Regarding reputation, Innovation Refunds shines brightly in tax credit assistance. Their online reviews paint a positive picture, reflecting the satisfaction of their clients. Innovation Refunds, with over 400 delighted customers, proudly boasts an exceptional average score of 4.9 out of 5 stars on renowned review platforms like Trustpilot and Google.

Additionally, they have received a good rating on platforms like BBB and Glassdoor, affirming the credibility of their services. The abundance of favorable reviews and testimonials speaks volumes about their commitment to excellence. It underscores their position as a reputable and trusted partner for ERC claims.

Fees Charged by Innovation Refunds

Innovation Refunds operates on a transparent fee structure, charging 25% of the refunded ERC amount for their services. This means their fee is contingent upon completing your ERC claim and receipt of the refund.

By utilizing this performance-based fee model, Innovation Refunds aligns their success with yours, creating a strong incentive to maximize your tax credit benefits. This fee structure ensures that you only pay for results, motivating their team to work diligently to secure the highest possible refund for your business.

One of the most attractive aspects of Innovation Refunds’ fee policy is the absence of upfront payments or obligations. Engaging in their services doesn’t require any financial commitment from you before completing your ERC claim. This no upfront fees policy allows you to embark on the claim process without bearing any financial risk, instilling confidence in their commitment to providing a risk-free experience for their clients. The clarity and simplicity of their fee structure reinforce their dedication to transparency and building trust with their clients.

Processing Time for ERC Claims

When filing for the Employee Retention Credit (ERC) with Innovation Refunds, businesses can typically expect an average processing time of 4 to 5 months. This duration encompasses the time from the initial filing to the final receipt of the ERC refund.

While individual processing times may vary depending on the complexity of each claim and other factors, Innovation Refunds aims to expedite the process and deliver timely results to their clients.

It is essential to note that the processing time for ERC claims can be impacted by the Internal Revenue Service (IRS) backlog. Due to various factors, including the volume of claims and other economic challenges, the IRS may experience delays in processing tax credit claims.

While Innovation Refunds endeavors to streamline the process for their clients, knowing that the IRS backlog can extend the processing time beyond the average duration is essential.

Innovation Refunds’ Refund Policy

At Innovation Refunds, client satisfaction is paramount, and they back it up with a 100% satisfaction guarantee. This means that if, for any reason, you are not entirely satisfied with their services, you have the assurance of a refund.

The company strongly emphasizes ensuring that its clients receive top-notch service and experience a seamless ERC claim process. This satisfaction guarantee reflects their commitment to building lasting relationships with their clients and instilling trust in the quality of their assistance.

Innovation Refunds makes the process simple and efficient if you request a refund under the satisfaction guarantee. You have a window of 30 days from your payment date to make a refund request.

This allows you sufficient time to assess their services and determine if they meet your expectations. Should you decide to proceed with a refund request, Innovation Refunds ensures that the process is prompt, ensuring that you receive the refund owed to you within the specified timeframe.

FAQs

What is ERC?

During the COVID-19 pandemic, the Employee Retention Credit (ERC) is a tax credit that aims to help businesses keep their employees onboard. The CARES Act established it as a refundable credit, meaning companies can receive a refund even if they owe no taxes.

What are the types of ERC?

In 2020, there were two types of ERCs: One was the 2020 ERC, which businesses experiencing a considerable drop in gross receipts during that year could access. It offered a credit of 50% of the initial $10,000 in qualified wages per employee (maximum $5,000 per employee). The 2021 ERC, available for businesses facing a significant gross receipts decline in 2021, offered a credit equal to 70% of the first $10,000 in qualified wages per employee (up to $5,000 per employee).

Is Innovation Refunds a Scam?

So, is Innovation Refunds a scam or a legit company? While exploring the legitimacy of Innovation Refunds, it is essential to acknowledge that some complaints and concerns have been raised about the company. Some individuals may have expressed dissatisfaction with specific aspects of the services or encountered issues during the ERC claim process.

Such feedback highlights the importance of thoroughly evaluating any service provider before engaging in their services. However, It’s obviously crucial to consider these complaints in context and determine if they are isolated incidents or representative of broader issues.

In contrast to the complaints, Innovation Refunds has managed to maintain an impressive A+ rating with the Better Business Bureau (BBB). This reputable organization evaluates businesses’ trustworthiness and performance.

Based on over 400 reviews, the company has earned a remarkable average rating of 4.9 out of 5 stars on Trustpilot, receiving positive feedback as well. These favorable assessments indicate many satisfied clients who have had a positive experience with Innovation Refunds. The company’s consistent efforts to resolve issues and provide quality service are evident in these positive reviews and ratings.

Conducting individual research is crucial when considering any service provider, including Innovation Refunds. While online reviews and ratings provide valuable insights, they should not be the sole basis for decision-making. It’s essential to thoroughly examine a company’s offerings, policies, and reputation.

Reach out to the company directly to address any concerns or questions you may have. Seek recommendations from trusted sources, and ensure the company meets your needs and expectations. By conducting thorough research, you can decide whether Innovation Refunds is the right fit for your business’s tax credit needs.

Pros and Cons of Using Innovation Refunds

Pros

• Good Reputation: Innovation Refunds has earned a positive reputation for its outstanding customer service and dedicated approach to assisting businesses with ERC claims.
• High Customer Satisfaction: The company boasts high customer satisfaction, evident from its impressive Trustpilot rating and numerous positive reviews from satisfied clients.
• Free Analysis: The free analysis offered by Innovation Refunds allows businesses to assess their eligibility for the ERC without any financial commitment, enabling an informed decision.
• User-Friendly Features: Their no upfront payments, secure portal, and payroll integrations create a user-friendly experience, ensuring ease and convenience for their clients.
• Refund Guarantee: Innovation Refunds’ 100% satisfaction guarantee gives clients the confidence to request a refund if dissatisfied with the services within 30 days.
• Dedicated Account Specialists: The allocation of dedicated account specialists ensures personalized assistance, streamlining the claim process and fostering clear communication.

Cons

• Expensive Fees: One potential drawback of using Innovation Refunds is their fee structure, which charges 25% of the ERC refund amount. While the performance-based model aligns interests, it may be expensive for some businesses.
• No Explanation for Disqualification: Some clients have raised concerns about needing more detailed explanations when they don’t qualify for the ERC. Transparency in such cases could be improved.

Innovation Refunds Alternatives

As mentioned further up on this page, our #1 recommended ERC company is ERC Straightline, so you might want to check them out.

If you’re interested in even alternatives to Innovation Refunds for claiming the Employee Retention Credit (ERC), here are some other reputable companies that specialize in assisting businesses with tax credits as well:

ERC Specialists: ERC Specialists is another company that focuses on helping businesses claim Employee Retention Credit. They offer their services at a fee of 10-15% of the refunded ERC amount, providing a competitive pricing structure for their clients.

Harbor Compliance: Harbor Compliance is a versatile company that assists with various tax and compliance issues. They offer a free consultation to help you determine your eligibility for the ERC and discuss the best approach for claiming the credit, ensuring personalized guidance tailored to your business needs.

Patriot Tax Group: For businesses seeking expertise in tax credits and deductions, Patriot Tax Group is a specialized option. They, too, offer a free consultation to assess your eligibility for the ERC and explore the most suitable choices for claiming the credit, accommodating businesses with personalized support.

By exploring these alternatives and conducting thorough research, you can find the best fit for your business’s specific ERC claim requirements. Each company offers unique features and pricing structures, making it crucial to compare their offerings to make an informed decision.

As you search for the ideal partner to navigate the complexities of the ERC claim process, consider each company’s benefits, reputation, and customer satisfaction levels to ensure optimal results for your business.

Eligibility Requirements for the ERC

To authorize the Employee Retention Credit (ERC), your business must meet specific criteria:

Employees in 2019: Your business must have had employees during the base year 2019 to be eligible for the ERC.

Significant Decline in Gross Receipts: To qualify for the ERC, your business must have undergone a substantial decline in gross receipts during either 2020 or 2021 compared to the corresponding quarter in 2019. The decline threshold for 2020 is a 50% reduction, while for 2021, it is a 20% reduction.

Payment of Qualified Wages: During the decline in gross receipts, your business must have continued to pay qualified wages to your employees. Qualified wages include compensation and certain health plan expenses, subject to certain limits.

Steps Involved in Filing for the ERC

Claiming the ERC involves the following steps:

• Determine Eligibility: First, ascertain whether your business meets the ERC eligibility criteria based on the earlier requirements.
• Gather Necessary Documentation: Collect essential documentation, such as payroll records and tax returns, to support your ERC claim.
• File Form 8936: Submit Form 8936, also known as the Employee Retention Credit form, along with your 2020 or 2021 tax return, depending on the applicable tax year.
• Wait for IRS Processing: After filing, wait for the IRS to process your ERC claim. As mentioned previously, the processing time can vary but is typically around 4 to 5 months.
• Receive Your Refund: If your ERC claim is approved, you will receive a refund equal to the credit amount, providing your business with the financial relief it deserves.

How Much Money Can You Save by Claiming the ERC?

The potential savings from claiming the ERC depend on the number of employees in your business and their qualified wages. The ERC allows you to claim 50% of the first $10,000 in qualified wages paid to each employee. This means the maximum credit available per employee is $5,000.

For instance, if your business has ten employees, and each employee receives $10,000 in qualified wages, you could be eligible for an ERC of $50,000 (10 employees x $5,000 per employee).

Understanding the eligibility requirements, potential savings, and the process of claiming the ERC empowers businesses to navigate the application process efficiently.

By adhering to these steps and engaging with experienced tax credit assistance companies, such as Innovation Refunds or their alternatives, businesses can maximize their chances of successfully obtaining the Employee Retention Credit.

Conclusion

Verdict: Legit!

Overall, this article has provided an in-depth evaluation of Innovation Refunds. This company assists businesses with claiming Employee Retention Credit (ERC). The analysis covered various aspects, including their services, features, customer service reputation, fees, and processing times. Innovation Refunds stands out for its good reputation, high customer satisfaction, and user-friendly features like no upfront payments and dedicated account specialists.

Regarding whether Innovation Refunds is a scam, it is important to consider the counterpoint of their A+ rating with the Better Business Bureau and positive Trustpilot reviews. While some complaints exist, Innovation Refunds has demonstrated credibility and competence in helping businesses with their ERC claims.

Ultimately, whether to choose Innovation Refunds or explore alternatives like ERC Specialists, Patriot Tax Group or ERC Guaranteed depends on your business’s specific needs and preferences. Before making a decision, make sure to always conduct thorough research and assess how well a company aligns with your requirements.

As always, when dealing with financial matters, exercising caution and conducting individual research is essential. Engaging in a tax credit assistance service should be a well-informed decision based on your unique circumstances.

We encourage you to consider all the information in this article and contact the companies directly to ensure the best possible outcome for your business’s ERC claim process.

Discover our #1 Recommended ERC Company here

I hope you found this short review on the Innovation Refunds company to be helpful and that you now have a better understanding on what it is and that it´s not a scam. If you have used their service then please share your experience in the comment section below as it can help other business owners!

I wish you success!

Michael, founder of Gold Retired