Skip to content
Funding Resources Logo Funding Resources Logo
  • Home
  • What is ERC?
  • Why Funding Resources?
  • ERC Qualifications
  • FAQ
  • Support
  • Begin Qualifying

App

Home » App
AppAhsan Ghaffar2022-09-29T17:59:47+00:00
 

Application Form

Step 1 of 29

3%

How much can I get from ERC?

If you have multiple companies, input and qualify each company separately.

Estimate your potential employee retention credit amount

This is for estimate purposes only. The actual credit is based off of documents submitted. Potential ERC amount is based off the average count qualifying for all 6 quarters of the ERC program.

Price: $4,000.00
Quantity
Price: $11,500.00
Quantity
*This is an estimate only based on the employee counts entered and does not represent a guarantee of the credit amount you will receive, or that you will qualify for the program.

How it works

The Employee Retention Credit (ERC) is a stimulus program created by the CARES Act that offers employers a significant refundable tax credit for retaining employees during the pandemic. The following questions will determine if your business qualifies.

1

Answer the questions in the qualifying survey

2

We’ll let you know if you qualify

3

If you do, upload tax and payroll documentation

4

Our team will process and file your return

Please have the following information ready

Average number of full-time employees for 2019

This is someone that works 30+ hrs per week

Gross receipts for each quarter of 2019, 2020 & 2021

Total deposits/sales not including PPP funds

Info on how government shutdowns impacted your business

An example would be if your vendors experienced shutdowns and you couldn’t obtain critical goods
Please do not guess, estimate, or embellish. Funding Resources uses your answers to determine which quarters to file on your behalf. Once submitted your responses can not be changed.

Did you pay any W-2 wages in 2020 or 2021?

The ERC credit is calculated as a percentage of W-2 wages paid - 1099 wages do 𝗻𝗼𝘁 qualify. Note: The wages of majority owners (over 50%) and their immediate relatives (even if paid W-2) do not qualify for the ERC program. Wages for all other W-2 employees still qualify.
Immediate family members include: spouse, children, siblings, parents, aunt/uncle, niece/nephew, step relatives" aria-label="Immediate family members include: spouse, children, siblings, parents, aunt/uncle, niece/nephew, step relatives

Based on your responses, you do not qualify for the ERC Program.

When did you start your business?

2019 full-time employees

A full-time employee is classified as someone that worked at least 30 hours per week, or 130 hours per month in 2019. Remember, this question is based on the average amount of employees during 2019.

Important: The IRS aggregate rule applies to the ERC credit. If your company has common ownership with other companies, please take into account all associated businesses when calculating this question.

Example: The business owner was the majority owner of ABC Company, which averaged 50 FT employees in 2019. The same business owner was also the majority owner of 123 Company, which averaged 75 FT employees in 2019. According to the aggregate rule, the employee count of both companies must be combined for the ERC program. Although both companies can be entered for the program, they would both be classified as having over 100 employees.

Note: Businesses with over 100, but under 500 FT employees in 2019 do not qualify for ERC funds in 2020. Businesses with over 500 FT employees in 2019 do not qualify for the ERC program, except for actual wages paid to employees that did not work due to a government shutdown.

Part-Time Employees: Part-time employee wages do qualify for the ERC program. This question only requires full-time employee count to determine qualification.

How many full-time employees did you average in 2019?
Has your business had over $1 million in gross receipts annually?
Great news! Based on your answers you qualify for the ERC Recovery Startup Business Credit. This credit applies for 3rd and 4th quarter of 2021. The credit is up to $50,000 per quarter. Click 'Continue' to provide your information.

Based on your responses, you do not qualify for the ERC Program.

ERC qualification options

There are three ways to qualify for ERC. Please answer the questions in the following sections to determine your eligibility for the program.

1
Revenue reduction
2
Supply disruption
3
Full or partial suspension

Revenue reduction

Option 1

The most straightforward way to qualify for the Employee Retention Credit is from a qualified revenue reduction during the qualification period of the program.

Revenue reduction qualifications

  • 2020 - 50% reduction of gross sales for the 2020 quarter as compared to the same quarter in 2019. When/if the revenue reduction in 2020 gets back to 80% of the 2019 level, the qualification ends.
  • 2021 - 20% reduction of gross sales for the 2021 quarter as compared to the same quarter in 2019 (or 2020 if you were not in business during the quarter in 2019). The alternative lookback option allows the business to use the previous quarter compared to the same 2019 quarter to qualify.
Did you experience any revenue reductions in 2020 or 2021?

Revenue reduction qualifications

  • 2021 - 20% reduction of gross sales for the 2021 quarter as compared to the same quarter in 2019 (or 2020 if you were not in business during the quarter in 2019). The alternative lookback option allows the business to use the previous quarter compared to the same 2019 quarter to qualify.
Did you experience any revenue reductions in 2021?

Revenue reduction

Option 1

Were your gross receipts (total deposits) for at least one quarter in 2020 less than 50% of your gross receipts for the same quarter in 2019?

Example: Q3 of 2020 had less than 50% of gross receipts as compared to Q3 of 2019.

Revenue reduction

Option 1
Which 𝟮𝟬𝟮𝟬 quarters were you 𝗱𝗼𝘄𝗻 𝟱𝟬% of gross compared to 𝟮𝟬𝟭𝟵 levels?

Revenue reduction

Option 1

Did your gross receipts get back to 80% of 2019 pre-COVID levels?

In any quarter of 2020 did your gross receipts return to 80% of pre-COVID levels?

Revenue reduction

Option 1
Which quarter did your gross receipts get back to 𝟴𝟬% 𝗼𝗳 𝟮𝟬𝟭𝟵 levels of the same quarter?

Q1 2021 revenue qualifier

Option 1
Which qualifications apply to your business?

Q2 2021 revenue qualifier

Option 1
Which qualifications apply to your business?

Q3 2021 revenue qualifier

Option 1
Which qualifications apply to your business?

2021 - Q1 Alternative Quarter Revenue Qualifier

Option 1

Since you did not have a 20% revenue reduction in Q1 2021 as compared to Q1 2019, you can utilize the previous quarter to potentially qualify.

Were your Q4 2020 gross revenues 20% lower than your Q4 2019 gross revenues?

Q2 2021 revenue qualifier

Option 1
Which qualifications apply to your business?

Q3 2021 revenue qualifier

Option 1
Which qualifications apply to your business?

Supply disruption

Option 2

Supply chain disruption is a common qualification for businesses that rely on vendors and suppliers for their business to function properly. This qualification must have resulted from a government suspension order to your supplier that resulted in the supplier not being able to deliver critical goods, but may continue beyond the original suspension order. The specific requirements for this qualification are listed below.

These impacts qualify a company regardless of revenue gain or loss.

Please reference the IRS notices pertaining to supply chain disruption qualification: Notice 2021-11 & Notice 2021-20.

Supply disruption qualifications

  • More than Nominal Impact - The supply chain disruption due to vendor shutdowns must have resulted in a more than 10% impact on your business. This can be directly from the reduction of sales from the inability to procure the supply item, or from the impact not being able to procure the item had on your business. To calculate the more than 10% impact, evaluate the impact of the supply item on your 2019 gross receipts. For example, if you were not able to procure pallets for the shipping of goods, consider how much of your business relied upon pallets in order to operate in 2019. If it was more than 10%, this qualification can apply.
  • No Replacement Supplier - Your business must not have been able to find a reasonable replacement supplier for the supply item affected by the government suspension order.

Supply disruption

Option 2

Did you experience a supply chain disruption due to a COVID government ordered suspension on your supplier?

The cumulative impact of the disrupted supply items must have directly or indirectly represented more than 10% of gross sales in 2019. This does not mean that your revenue must have decreased to use this qualification. If you were able to find a replacement supplier that resulted in a less than 10% impact on your business, this qualification does not apply.(Required)
In which 2020 quarters was your business impacted more than 10% due to the cumulative impact of any disrupted supply items?
This does 𝗻𝗼𝘁 mean revenue must have decreased during the 2020 quarters.
In which 2021 quarters was your business impacted more than 10% due to the cumulative impact of any disrupted supply items?(Required)
This does 𝗻𝗼𝘁 mean revenue must have decreased during the 2021 quarters.
My business was not able to find a reasonable replacement supplier for any of the disrupted supply items.(Required)

Full or partial suspension

Option 3

The partial or full shutdown qualification is based on a "suspension test" to demonstrate that your operations were partially or fully suspended due to a Covid-19 governmental order. Keep in mind that a government restriction may have had a direct impact on your operations even though that shutdown order wasn't given to you directly.

Important: This qualification only applies during the period of the actual government order. Since there were very few government shutdown orders during 2021, the actual shutdown type of this qualification mainly applies to 2020 quarters. However, if the impact of shutdowns affected your business beyond the actual shutdown period, this qualification may apply.

Please reference the IRS notices pertaining to suspension qualification: Notice 2021-23, Notice 2021-33 & Notice 2021-49.

Full or partial suspension qualification requirements

  • More than Nominal Impact - The partial suspension from a government order must have had a more than nominal effect, which means it affected more than 10% of business operations. This impact can come from a reduction in business hours of 10% or more, or a suspension of your business operations that represented 10% or more of gross receipts as compared to 2019. (This does not mean that a 10% reduction in sales is required to qualify, but the order must have suspended at least 10% of your revenue-producing operations.)

    Hourly example: Government orders required a restaurant to close 2 hours early due to curfew requirements. The 2 hours represented 15% of the business working hours. This business qualifies for the period affected by the government order.

    Gross receipts example: Government orders required a radiology clinic to stop elective procedures during Q2 & Q3 of 2020. The business reviewed its gross receipts for Q2 & Q3 of 2019 and determined that the suspended elective procedures represented 18% of its total gross receipts during those quarters. This business qualifies for these two quarters.

  • Inability to Convert to Telework - If the business was able to effectively convert to a remote work environment that mitigated the nominal impact on the business, they do not qualify for the suspension qualification.
IRS Examples
  • 1. An employer that operates an essential business is not considered to have a full or partial shutdown if government orders allow them to remain open. However, an employer that operates an essential business may be considered to have a partial suspension if more than a nominal portion of its business operations are suspended.
  • 2. The partial suspension qualification applies if employers could not obtain telework capabilities that allowed their business to operate as usual (adequate IT support etc). It also applies if the employee's work was not portable, or the presence of an employee in the physical workspace plays a critical role.
  • 3. If an employer's workplace is closed due to a government order for certain purposes, but the employer's workplace may remain open for other limited purposes, the employer's operations would be considered to be partially suspended if more than a nominal portion of the business cannot be performed.
  • 4. A restaurant must close its on-site dining or every other table due to government orders but can still operate its drive-thru or carry-out service. This would be considered partially suspended.

Note: For any periods you qualify you will be required to provide a brief description of the more than nominal effect on your business to substantiate your claim.

Full or partial suspension

Option 3

The cumulative effect of the full or partial suspensions must have had a more than 10% impact on your business operations when considering the gross receipts of that portion of your business in 2019. This does not mean that your revenue must have decreased to use this qualification.

Did you experience a full or partial suspension due to a COVID government order?(Required)
I have another suspension to claim
In which 2020 quarters were you impacted by these suspensions?
In which 2021 quarters were you impacted by these suspensions?

Congratulations!

Based on your answers, you qualify for the following quarters!

Q2 of 2020
Q1 of 2021

Depending on your qualifications, you will see your substantiation statements below. These statements will be retained to substantiate your claim with the IRS.

Supply Chain Disruption Substantiation Statement

Under the facts and circumstances, is claiming the Employee Retention Credit for 2020 Quarters - Q3, and 2021 Quarters - Q3, due to supply chain disruption that affected one or more suppliers, making them unable to make deliveries of critical goods or materials. The supply item(s) caused a more than nominal impact on cqmbwjfqw, which was not able to find a replacement supplier.

Full or Partial Suspension Substantiation Statement

The statement below is for the first suspension only. The statements for additional suspensions will be identical, with the insertion of specific details for each suspension impact.

Under the facts and circumstances, cqmbwjfqw is claiming the Employee Retention Credit for 2020 Quarters - Q3, and 2021 Quarters - Q3, due to supply chain disruption that affected one or more suppliers, making them unable to make deliveries of critical goods or materials. The supply item(s) caused a more than nominal impact on cqmbwjfqw, which was not able to find a replacement supplier.

In 2020, how many W-2 employees did you average?

Please enter a number greater than or equal to 0.

In 2021, how many W-2 employees did you average?

Please enter a number greater than or equal to 0.

Great news!

Based on your answers, you qualify for the ERC program!

Estimated credit amount

Up to $50,000

Per Quarter

This is an estimate based on the responses and employee counts provided and is not a guarantee of your credit amount or qualification. Many factors are evaluated during your ERC analysis. If we determine you qualify, this number could be much higher or lower.

Important
Please add [email protected] & [email protected] to your email safe sender list or you may not receive communication as your ERC credit is processed. For instructions, click here.

Confirm your information

If you have multiple companies, input and qualify each company separately.

Your Information

Company Information

Address(Required)
By checking you attest that the answers provided are accurate to the best of your knowledge and agree to our terms & conditions. You must agree before proceeding.(Required)
By checking you agree to keep documentation on file that substantiates claims made in this application in the event of an audit from the IRS. You must agree before proceeding.(Required)
Powered By:

© 2022 | Privacy Policy

Quick Links

  • What is ERC?
  • Why Funding Resources?
  • ERC Qualifications
  • FAQ
  • Support
Funding Resources, LLC DOES NOT provide any legal or accounting advice and users of this web site should consult with their own lawyer and C.P.A. for legal and accounting advice.
FacebookTwitterInstagramPinterest