Bootstrap Expand and Collapse FAQ Accordion

Can I qualify for the ERC if I received PPP funds?

YES! Initially with the CARES Act, employers could choose to apply for PPP or claim ERTC credits, but not both. PPP was more beneficial than ERTC for most businesses (for reasons we won’t go into here) and so most businesses with under 500 employees received forgivable PPP Loans.

Does the tax credit apply only for 2020?

It was originally a 2020 credit. And it was either the Paycheck Protection Program OR ERTC. Almost every business chose the PPP option.

Do I qualify if my Q1 2021 revenue was back to pre-pandemic levels?

Even though you may feel like revenue is back to normal, there are some items you want to consider before passing on this ERTC assessment. First, even if revenues have returned to “normal” in 2021, you may have qualified in 2020 and you can retroactively claim those credits.

Does the ERC need to be repaid?

You are most likely referring to a provision of the CARES Act that allowed employers to defer the deposit and payment of the employer’s share of Social Security taxes. Those deferrals must then be repaid – with at least 50% of the balance due by 12/31/21 and the remaining balance due by 12/31/22. ERTC credits are NOT a deferral. They are dollar-for-dollar credits against wages you’ve paid.

Why hasn't my CPA or my bank mentioned the ERC?

Your banker, CPA, or Financial Advisor was probably very helpful when it came to getting your PPP funds because they were effectively signing you to an SBA-guaranteed loan. The SBA paid the bank administrative fees based on the PPP loans they made, and so they were incentivized to educate you about the program and get all your paperwork in order.