The 12 ERTC Myths

• Myth: I am not in the right industry to get ERTC
  
• Fact: Nearly every industry is eligible. There are some rare ones, such as mortgage companies, where the company could still work the same way with phone, email and zoom - that don't qualify.
  
  

• Myth: I had to lose money in 2020 and 2021 to be able to get ERTC.
• Fact: Your business just had to be impacted by COVID, to qualify.
  
  
  
• Myth: This is a loan that I have to pay back.
• Fact: This is not a loan. The IRS will give you tax credits and then count prior payroll taxes as "overpayment", that you are due 1 or more checks for.
  
  
  
• Myth: This will take a lot of work to do.
• Fact: You, your accountant, or bookeeper can easily get the information needed from whatever accounting and payroll software you use. Such as Quickbooks and Gusto.
  
  
  
• Myth: I have to pay someone a lot of money upfront to do this.
• Fact: While there are some companies that charge thousands of dollars up front. There are other that don't charge much up front. With us it's just a very small submission fee, and then we only get money after you get your checks (as a contingency fee). In fact we do the analysis and let you know what your claim amount will be (the money that the IRS will send), without you having to spend any money.
  
  
  
• Myth: I can file for ERTC if I only had 1099 employees.
• Fact: You have to have had 2 or more W2 employees (that aren't the owners) in order to qualify for ERTC. This is one of the few hard requirements to be able to submit a claim.
  
  
  
• Myth: I need to still be in business to get ERTC.
• Fact: You can still get ERTC even if you had to close your business in 2020 or later. We have helped a few clients that unfortunately had to close their doors over the last couple years. For example, we helped a Phoenix restaurant get $268,544 in ERTC money, even though they had to close in late 2021.
  
  
  
• Myth: I can keep submitting to the IRS until I get the money.
• Fact: You only get one shot, one submission, to get it right. The IRS isn't going to let you keep taking their time, in order for you to get this money handed to you. That's why it's good to have a company that has a lot of experience getting these claims and getting checks for clients.
  
  
  
• Myth: If I received PPP then I can't get ERTC.
  
• Fact: You can get both PPP and ERTC. Early on with ERTC it was the case where you couldn't do both. But the IRS revised that. They will take into account your PPP and adjust.
  
  So far every one of our clients that received PPP has been able to claim ERTC too. This is one of the reasons that some CPAs tell their clients "you won't qualify" - they are thinking of the prior way it was, before the revisions.

• Myth: I should just get my accountant or bookeeper to do this for me.
• Fact: Unless your person has signficant experience with the IRS tax credits programs, they most likely won't do it right, or they will miss some of the money you are due.
  
  Only about 1% of CPAs have experience in these programs. We sometimes get clients where their accountant didn't let them know that they could qualify. And then after they find out it's a possibility, the accountant will all of a sudden try to act like an expert. Leading the client to ask "if you're an expert in this, how come you didn't suggest this to me on your own?".
  
  
  
• Myth: My accountant says they know this program and I shouldn't do it.
• Fact: Most accountants don't understand the program or are basing their opinion on outdated information about the program.
  
  
  
• Myth: This seems to good to be true, so it can't be real.
• Fact: This is the government's way of giving back to businesses that did keep W2 employees employed in 2020 and 2021, and paid payroll taxes. The business is getting credits for that. This helps businesses keep going, and potentially expand. Even if a business closed it's doors, the money could potentially be put into another business (though that's not required).
  
  There were so many people that were paid to NOT work and be unemployed during 2020 and 2021. This is the flip side of the coin, where businesses get credit back for keeping people working.