There are several common misunderstandings regarding the Employee Retention Credit (ERTC) that have caused confusion among business owners. Some of these misunderstandings include:

• Believing that receiving a Paycheck Protection Program (PPP) loan disqualifies your business from the ERTC: This is not true, and businesses that received PPP loans are still eligible for the ERTC.
• Assuming that your business must have experienced a decline in revenue to qualify for the ERTC: While a decline in revenue is one of the criteria for eligibility, it is not the only one. Qualifying events include closing an office, supplier issues, meetings, timelines, etc… the List goes on.
• Thinking that the ERTC is only available for 2020: The ERTC is available for both 2020 and 2021, and businesses that did not claim the credit for 2020 can still do so.
• Believing that the ERTC is a loan: The ERTC is a tax credit, not a loan. This means that businesses that qualify for the credit will receive a check from the government, rather than a loan that must be repaid.

Let us here at ERC Applications, help and guide you through this expansive program, designed for small/medium-sized businesses.  

Let’s get on a call and talk:  313.509.1518