There are several misconceptions surrounding ERC that may cause business owners to think they do not qualify. In this blog, we will address three major misconceptions about ERC and clarify how businesses can still qualify for the credit, even if they were considered Essential, retained all of their employees and/or had increased revenue during 2020/2021.
Misconception #1: Essential Businesses Do Not Qualify for ERC
One common misconception about ERC is that businesses that were considered essential during the pandemic are not eligible. This is not true. Essential businesses can still qualify for ERC if they experienced any kind of business disruption or interruption as a result of COVID.
For example, we have helped UPS Stores, Grocery Stores, Medical Facilities and more get qualified for ERC. Those businesses were the definition of "Essential" and we still qualified them for ERC.
Misconception #2: Retaining Employees Disqualifies a Business from ERC
Another common misconception is that if a business retained all of its employees during the pandemic, it does not qualify for ERC. This is not true. Businesses that retained their employees can still qualify if they had a decline in revenue or experienced business interruption or disruption as a result of COVID.
For example, we have helped Dental offices, Private Schools, Churches and get qualified when they retained their employees.
Misconception #3: Increased Revenue Disqualifies a Business from ERC
This may be the biggest misconception out there when it comes to ERC. Business owners may believe that if their revenue increased during the pandemic, they do not qualify for ERC. This is also not true. Businesses can still qualify for ERC by having business interruptions or disruptions as a result of COVID.
For example, we have helped HVAC, Plumbing, Electricians, Home Healthcare, Grocery Stores, Dental Offices, Car Dealerships, Manufacturing, Distribution and more.
It is absolutely critical to work with the right ERC expert. A lot of businesses are being told today by their Accountants, CPAs and other ERC Firms that they do not qualify. This can cost a business hundreds of thousands or even millions of dollars because they do not apply for ERC.
The majority of businesses we are helping today get qualified for ERC are all being told they do not qualify. If you are one of these businesses, please reach out to us right away. We would enjoy the opportunity to educate you on how we are doing it so we can help your business.
In conclusion, it is important for business owners to understand that they can still qualify for ERC even if they were considered essential, retained all of their employees, or experienced increased revenue during the pandemic. Our ERC experts can help businesses to navigate the complex eligibility requirements and maximize their ERC refund. Don't let misconceptions prevent you from taking advantage of this valuable program.