6 Top Myths About Getting an ERC (Part 2)

Top ERC Myths Part 2

Debunking these 6 top ERC myths will help you qualify for, and easily collect the Employee Retention Tax Credit money your small business deserves.

This is the second one of our two-part  "6 Top Myths About Getting an ERC" video. Please also check  6 Top Myths About Getting an ERC (Part 1).

Transcript:

There’s so much business owners don’t know about employee retention credits / ERCs. Debunking these ERC myths will help you qualify for and easily collect the employee retention tax credit money your small business deserves.

Here are myths four, five, and six.

Hi, I’m Bill Elkins with Baron Payroll. Let’s start with myth number four—I’m not eligible for an ERC because I already got a PPP loan. Many business owners think that because they received a PPP loan, they’re not eligible for an ERC.

The good news is that you can apply for PPP loans and an ERC. The only consideration is that you don't double-dip. You can't claim an ERC for the same wages used for the PPP loan forgiveness.

The way Baron Payroll accomplishes this is by segregating wages by determining which pay periods are necessary for PPP loans, and which are best for maximizing ERCs.

Ready for some even better news? Up to 40% of your PPP loan forgiveness can be applied to non-payroll expenses. This means you will have more qualifying wages to apply to your ERC. That’s what Baron calls having your cake and eating it too.

Myth number five is an ERC is just a tax credit. No, it’s real money. Think of an ERC as exactly what it is, a refundable tax credit that’s paid to you in cash.

Appreciating the full weight and impact of the pandemic on small businesses, Congress got it right when they created ERCs. Simply file and your check will arrive by mail.

Myth number six I was told I don’t qualify for an ERC. Sadly, there’s a lot of misinformation out there. Over 50% of eligible businesses aren’t even aware that they qualify.

The ERC was designed to reward business owners for retaining employees throughout the COVID-19 pandemic.

Not every business adviser is an ERC specialist. So before passing up the money you could’ve gotten by applying for an ERC, it’s in your best financial interest to work with an ERC expert.

And if you’re in doubt, call Baron! It’s why we’re here—to help put money in your pocket, where it belongs.

Contact us to get paid now.

For the latest in payroll videos designed to help your business, please watch  and subscribe to our Baron Payroll YouTube Channel. 

I want to learn more about qualifying for ERC's.

Book Time With Bill Elkins