Don’t Leave

ERC Money on the Table

If you have employees and were impacted by COVID, you may be eligible to receive up to $33k per employee from the IRS.

Pay a flat fee

Stay compliant
with the IRS

We make the
process easy

But first, why is it important to
choose an ethical
filing partner?

While the ERC has helped hundreds of thousands of small businesses recoup from the impacts of COVID-19, there are a lot of ERC scam promotions out there ready to take your money and leave you in trouble with the IRS.

Here are some things to be aware of:

Paying a 20% or greater fee based on the size of the refund.

Being promised you qualify and can apply without confirming your eligibility against the IRS requirements.

Incorrect calculations of what you’re entitled to.

You need an ethical accounting partner who plays by the rules and makes sure your business stays in good standing.

Find Out If You Qualify

Our Simple ERC Filing Process

Check Your Eligibility

Schedule a free call with us to determine if your business qualifies.

Crunch the Numbers

Provide us the necessary financials & we will prepare and file your ERC returns.

Deposit Your Refunds

We follow up with the IRS until they mail your checks and you are paid the correct amount.

Check Your Eligibility

Schedule a free call with us to determine if your business qualifies.

Crunch the Numbers

Provide us the necessary financials & we’ll calculate and process your form.

Deposit Your Refunds

We follow up with the IRS until they mail your checks and you are paid the correct amount.

The 2020 and 2021 Employee Retention Credit

Helps Businesses Like Yours Recoup from COVID

The Employee Retention Credit (ERC) is a cash refund from the IRS to reward businesses for keeping employees on payroll during the Covid 19 pandemic. One key component of the program is that the business must have W-2 employees (not contractors). Businesses who qualify, including nonprofits, are eligible for a cash refund of up to $33,000 per employee.

And yes, there’s still time to file!

Business Qualifications

If you have at least one employee, but less than 500 (The IRS generally excludes any majority S-Corp or C-Corp owners and related family members from the ERC)

And, if ANY of the following points apply to your business, you qualify.

You were forced to reduce capacity or shut down in 2020 or 2021 due to city, county, or state regulations.
OR
You made 20% less gross revenue in Q1, Q2, or Q3 in 2021 compared to the same quarter in 2019, or you made 20% less in Q4 2020 compared to the same quarter in 2019.
OR
You made 50% less gross revenue in a calendar quarter in 2020 compared to the same quarter in 2019.
OR
Businesses started after February 2020 are eligible to receive up to $50,000 in Q3 2021 and up to $50,000 in Q4 2021 as recovery startups.

Find Out If You Qualify

Why choose Beach Cities Accounting
For Your ERC Filing?

Many complex calculations are involved in receiving the ERC. Specialized knowledge is extremely helpful due to the ever-changing IRS guidance. Of course, businesses want to maximize the benefit of all government programs, including the ERC, PPP loan forgiveness, Restaurants Revitalization Program, COVID sick pay, COVID Family Leave pay, R&D tax credits, and government grants and contracts. However, you are not allowed to double dip between different programs, so submitting correct documentation is essential.

We’ve spent hundreds of hours navigating the nuances between the PPP loan and the Employee Retention Credit to strategically maximize the amount of money we can obtain for our clients.

Learn More About Us

Our ERC Stats

We've put over

$0 Million

Back into our clients’ bank accounts

$0

Average payout to restaurant clients

$0

Average payout to non-restaurant clients

Find Out If You Qualify

After doing a google search regarding the ERC, I found Beach Cities Accounting and read the reviews from others before proceeding because I wasn't very well-versed in the ERC process and didn't want to be taken advantage of as many other offices have reported from the ERC mills that are out there charging exorbitant fees. I was THRILLED with the service and thorough attention to detail provided by all staff members as well as Kathy McQuiggan's kindness and patience as she answered ALL of my many questions and walked me through the process. Needless to say, it was easy, painless and our office ended up being able to recover MUCH MORE MONEY than we could have ever imagined and the fees were minimal for the services that were provided by this firm. I highly recommend Beach Cities Accounting and am very glad I chose them to assist our office with this ERC process. Thanks so much, Kathy!!!

- Associated Chiropractic

I was researching another CPA firm before signing on with for their ERC services Friday evening, when I came across an article Kathy had written. In the article she wrote "Helping clients receive the (ERC) has warmed my soul. I love helping clients gain a huge, unexpected windfall, especially after difficult years.” I immediately sent her an email asking her if they work with construction companies. She responded quickly the following business day. She scheduled a zoom meeting and I was blown away with her professionalism and expertise. I am so thankful that I decided to give her my business. She has been amazing to work with and I am 100% confident in the results she has provided. I would recommended EVERYONE to use her for ERC over anyone else that is "selling" numbers. You won't be disappointed.

- Stephanie Neveu

Wow, what a great firm to work with, very knowledgeable, walking us through the process of ERC. They couldn't have been easier and more pleasant to work with. Highly highly recommend them.

- Sue Curran

FAQ

Questions
About ERC

What is the Employee Retention Credit (ERC)?

The Employee Retention Credit (ERC) is an IRS refund designed to give out aid to employers who paid their employees while suffering hardships from the COVID-19 pandemic. Businesses can qualify in several ways. Eligibility began in March 2020 and extended until the end of 2021 (although not every business is eligible for 4th quarter 2021).

If you are an employer who had employees on payroll in 2020 and/or 2021, you have come to the right place to learn more.

What if I already received Paycheck Protection Program (PPP) funds?

Do I have to pay back the employee retention credit?

Is this a direct deposit?

How long will it take for me to get my money?

How much can I receive in ERC?

2020
You are eligible for up to $5,000 in ERC per employee in 2020. The $5,000 is based on 50% of eligible employee wages and healthcare premiums during the period of eligibility, capped at $10,000 per employee for the entire year.

2021
You are eligible for up to $7,000 per quarter in ERC for each employee in 2021. The $7,000 is based on 70% of all eligible employee wages and healthcare premiums, capped at $10,000 per employee per quarter.

The maximum amount of ERC you can receive for each employee is $26,000 ($5,000 from 2020, and $7,000 from each of the three quarters in 2021). A few businesses can qualify for more than $26k per employee if they started their business after February 15, 2020.

Who qualifies for the Employee Retention Credit?

There are three main ways that a business can qualify for the ERC:

1. Significant Decline in Gross Receipts
The gross receipts (revenue) test is the most common and straightforward way for a business to qualify. The calculation is based on comparing quarters in 2020 and 2021 to their respective quarter in 2019. If there was a significant drop in revenue as defined by the IRS that quarter is eligible for the ERC. In 2020, significant means a 50% or greater decline in gross receipts compared to the same quarter in 2019. In 2021, you only need a 20% decline in gross receipts compared to the same quarter in 2019 for it to count as significant. The IRS excludes PPP amounts in the gross receipts test.

2. Full or Partial Suspended Operations due to Government Orders
Businesses qualify based on this criteria if they were forced to reduce capacity or shut down in 2020 and/or 2021 due to city, country, or state regulations. For example, if your city required you to suspend operations for a period, you would be eligible for ERC during the shutdown. Qualifying in this way requires you to figure out the exact dates for mandates and how they affected your business. Moreover, you must show that the shutdown had a nominal impact on your business.

Supply chain disruption from government orders is the rarest and most difficult to prove for ERC qualification. A specific government order must have caused the disruption and it has to have had a direct impact on your business. The mandate must have been in response to Covid-19, not for any other reason. Additionally, your business cannot have been able to source supply in another way.

3. Recovery Start-up Businesses
Finally, if your business started operations after February 15, 2020, and your average annual revenue was under $1 million, you qualify for quarters 3 and 4 of 2021. There is a cap of $50,000 per quarter under this qualification.

Whose wages are used in calculating ERC?

Whose wages do not count for the ERC?

Majority owners of the business and their family members’ wages are not allowed to be used in ERC calculations. See the list below for who is considered a family member:

Child or descendant of a child
Brother, sister, stepbrother, or stepsister
Father or mother or an ancestor of either
Stepfather or stepmother
Niece or nephew
Aunt or uncle
Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law

How do I claim the ERC?

How much will it cost me to file the forms?

It depends on where you go. Many firms charge flat fees ranging from 20% to 30% of total ERC refunds. This seems unnecessarily high considering these funds exist to help businesses recover from the pandemic. Look for firms charging based on the difficulty of the calculation, not the amount of ERC. At Beach Cities Accounting we charge a reasonable amount based on the complexity of the calculation. See below for Client Success Examples and fees.

Wrapping up

Client Success
Examples

A construction client qualified for one quarter and will receive a check from the IRS in excess of $802,000. Their fee was less than 4%.
A restaurant qualified for 2020 and 2021 and received checks in excess of $846,000. Their fee was less than 3%.
A non-profit organization will receive in excess of $351,000. Their fee was less than 4.5%.
A boutique law firm received in excess of $47,000 (charged less than 8%) and another small law firm received in excess of $14,000 (charged 10.7%).

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September 16, 2022

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Read Other articles

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ERC money available

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Don’t Leave

ERC Money on the Table