The Get Payroll Refund ads sound too good to be true. Is the Employee Retention Credit Program real?
Is ERC a Scam?
Study
How do you know the ERC Program is Real?
The Employee Retention Credit (ERC) under the CARES Act and related guidance encouraged businesses to keep employees on their payroll during 2020 and 2021. There were good people running all sorts of businesses who were “more than nominally impacted” by government orders, supply chain disruptions, travel bans, distancing requirements, and more. Congress understood this. This is why they passed legislation to refund payroll taxes paid back to employers. Put simply, if a US business suffered through any of the above during 2020 and/or 2021, IRS will send that business owner a check for up to $26,000 per employee.
- Yes, a check mailed to you by the IRS
- A refund of payroll taxes paid by an employer in either 2020 or 2021
- No not a loan. The are no tests for forgiveness
- No intangible ‘credits’ for tax accountants to drool over
- No strings attached. The cash can be used for any purpose
- Yes, employers can claim the refund today for employees that were on payroll so long ago
Insights & Perspectives
ERC Prep hears this question often. The ERC Program is real. IRS mails payroll refund checks directly to the employer.
US Department of the Treasury
“The American Rescue Plan extends a number of critical tax benefits, particularly the Employee Retention Credit and Paid Leave Credit, to small businesses.” – US Department of the Treasury
The Wall Street Journal
“As Pandemic Aid Dries Up, Businesses Chase Covid Tax Credit. The hottest business tax break is the employee-retention tax credit, a pandemic-aid provision that expired more than a year ago” – WSJ
The Ohio State Tax Blog
“Once-in-a-Lifetime Tax Incentive: Employee Retention Credit” – OSTB
Kept employees during the Pandemic?
Claim your Payroll Tax Refund of up to $26,000 per employee
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