Certified Public Accountants
While we’re not superheroes claiming super extraordinary powers and performing heroic magic, we are superexperts at helping businesses claim the newest refund available, the Employee Retention Credit (ERC).
What is ERC?
ERC is a refundable tax credit that you can claim for your small to mid-sized business if you were impacted by Covid-19 during qualifying quarters in 2020 and 2021.
- Get refunded up to $26,000 per employee
- Other than a loss of revenue, there are many qualifying factors
- Your refund is available to claim until the trillion dollars sitting in the treasury budget is depleted.
Play video to learn more about ERC, our CPA experts, fee structure and timeline.
Am I Eligible?
The ERC is the largest government stimulus program yet – designed to help businesses that were able to retain their employees during the COVID-19 pandemic and were impacted in one or more of these ways:
• A full or partial shutdown
• Supply chain interruption
• Inability to work with vendors
• Reduction of services or goods
• Accommodations for sanitation and social distancing
• Loss of revenue
• Claimed a PPP loan
• Inability to access equipment
• Cancellation of key meetings and/or projects
2 Reasons why you should choose Jorns & Associates
1. We're super specialized.
We can process ERC with our eyes closed! Our skilled and dedicated team of experts will:
☑ Guide you through a very technical, complicated and an ever-changing process.
☑ Provide a thorough eligibility evaluation.
☑ Analyze your claim in every way possible to ensure we maximize your eligibility refund.
2. We guarantee peace of mind.
Don’t miss out on eligible funds by trying to process ERC internally or through inexperienced accountants. With trusted ERC experts, you’ll save time, resources, and receive a bigger return at a minimized risk. We provide:
☑ No cost and risk-free services if you don’t qualify.
☑ Errors & Omissions (E&O) insurance.
☑ Long-term audit protection.
☑ Filing of amended returns with the IRS.
Frequently Asked Questions
No. This is not a loan. It’s a refundable tax credit. When we file your ERC claim we request a refund check for you.
Of course. The challenge is the ERC credit is taken on your payroll returns and not through your business income tax returns, which is what most CPA’s handle. Because of this most CPA’s don’t process this credit, unless they process your payroll in house. This is also a big reason why this credit is so underutilized. Since CPA’s don’t typically handle it and they are the tax experts, it has mostly fallen in a middle ground where few are able to effectively process the credit. Interestingly, we receive a large portion of our clients from CPA’s.
At Jorns we have decades of payroll experience, which has allowed us to specifically focus to understanding and maximizing the ERC program. In our experience we have found that due to the complexity (the ERC tax code is over 200 pages) and time investment necessary to understand the ERC program, very few are able to effectively maximize this sizeable credit for your business.
Yes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, modified the ERC credit rules. One of the modifications included allowing a company to have a PPP loan and still take advantage of the ERC credit. However, you can’t use the same dollar for dollar funds. We take this into account when processing your ERC credit.
Yes! There are two possible qualifications for 2020: revenue reduction, or a “full or partial shutdown of your business due to COVID-19”. Specifically the IRS describes this as “A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.” Below are several examples of qualifying events:
Example 1: A restaurant must close or limit its on-site dining. Such as having to close down every other table, due to COVID-19 restrictions.
Example 2: A business that needs to meet with clients in person and has to cancel meetings due to COVID-19 restrictions.
Example 3: A business has to reduce their operating hours because COVID-19 restrictions and cleaning requirements.
Example 4: A business had delayed production timelines caused by supply chain disruptions.
Example 5: A business with a planned event has to cancel that event, or restrict the amount of people who can attend due to COVID-19 restrictions.
The ERC credit is not considered income for federal income tax purposes, but you must reduce any deductible wage expenses by the amount of the credit. Please provide the credit information to your CPA for tax purposes.
Once your claim has been processed and filed, refunds are released based on the IRS backlog. Currently, the IRS has stipulated a 16-week minimum turnaround on the ERC refunds.
This is not a lending program – tax refunds are issued by the US Treasury. Therefore, all eligible employers that have filed a claim while funds are still available, will receive a refund. Once the funds are depleted, the program will no longer be offered.
Remember that this program is taken according to payroll taxes paid, not on income taxes. ERC funds not applied towards owed payroll taxes are treated as an ‘overdeposit’ of taxes that will be requested as a refund check from the IRS.
The wages of owners who have majority ownership, defined as over 50%, do not qualify, nor do the W2 wages of any immediate family members of the owner. However, the wages of non-family member W2 employees do qualify.
In the case an owner has less than 50% ownership, their W2 wages qualify, as do the W2 wages paid to immediate family members and non-family member W2 employees.