The ERC is for businesses that had a reduction in revenue during 2020 or 2021, or were mandated by the government to partially or fully shut down at some point during the pandemic. This could include having had to cancel planned travel and in-person meetings.
The ERC credit is based on payroll returns, not income tax returns, which is what most CPAs work with. Therefore, unless you have an in-house CPA, most won’t process the ERC.
In addition, while the ERC has simple-sounding qualifications, each one has complicated legal interpretations and nuances which are challenging to navigate. The ERC’s dense tax code is over 200 pages long. The knotty qualifications and tax code have resulted in most businesses not accessing the full funds available to them.
Yes! As of March 2021, businesses can still be eligible for ERC even if you previously received PPP funding.