The Employee
Retention Credit
We Maximize the ERC for Small Businesses
Now You Can Receive up to $26,000 per Employee
Request your ERC Consult Today!
How The ERC Works
Watch our slide show to understand more about the ERC program and how we can help your business. This program is set to sunset in less than 18 months so claim your right to your funds today!
David Soble, Founding Attorney
Why Work With Us?
Never before in our nation’s history has our federal government gone the distance to assist small business owners. Financial assistance is usually reserved for large, multi- national companies. The Pandemic changed all that for better and for worse. But Congress’s recent ERC legislation is a testament to the driving economic force and impact that small business owners have on our country’s economy.
The ERC underwent several technical changes under four major pieces of legislation, including how to determine qualified wages, which employees are eligible, and more. Your business’ specific case might require more intensive review and analysis. After several different pieces of ground breaking laws, the ERC program is complex and might leave you with many unanswered questions.
We have decades of experience protecting small businesses. We can help make sense of it all. Our dedicated experts will guide you and outline the steps you need to take so you can maximize the ERC claim for your business.
Since 1990, David Soble has provided no nonsense legal advice to small businesses, banks, lenders and consumers alike, in the legal areas of finance and real estate, and contracts.
David Soble is a graduate of Michigan State University (’87) and The Ohio State University College of Law (’90). After you speak with David and members of his legal team, you will quicky understand what makes people from all over the nation and the world seek their practical legal and business advice.
ERC STATS
Proven Resources
US Small Businesses
Months Left
Estimated Transactions
Businesses failed 2021
Our ERC services include:
Thorough evaluation regarding your eligibility
Comprehensive analysis of your claim
Guidance on the claiming process and documentation
Specific program expertise that a regular CPA or payroll processor might not be well-versed in
Fast and smooth end-to-end process, from eligibility to claiming and receiving refunds
Our ERC specialists will interpret highly complex program rules and answer your questions, including:
How does the PPP loan factor into the ERC?
What are the differences between the 2020 and 2021 programs and how does it apply to your business?
What are aggregation rules for larger, multi-state employers, and how do I interpret multiple states’ executive orders?
How do part-time, Union, and tipped employees affect the amount of my refunds?
ERC FAQs
Frequently Asked Questions
Top ERC Program Questions
This is an unprecedented program approved by Congress and exclusively meant for small business owners. Do you have other questions? Give us a call.
What is the Employee Retention Credit?
The Employee Retention Tax Credit is a government tax credit created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Employee Retention Credit allows small and medium business owners to receive a tax break for employees they were able to keep on staff during the Coronavirus pandemic.
More specifically, employers eligible for the Employee Retention Credit can receive up to 50% of wages paid to their employees between the dates of March 13th 2020 and December 31st 2020 with a limit of $10,000 per employee.
The ERC was extended by the Relief Act of 2021 to 70% of an employee’s wages per calendar quarter per employee from January 1st 2021 until October 1st 2021, with a limit of $10,000 per employee per quarter.
What industries qualify for ERC?
Many industries can qualify for ERC—the most important thing is that your company meets the qualifications listed above, not that they are in the proper industry or sector.
Some industries that qualify for ERC include education, government contractors, healthcare, life science, hospitality, retail, non-profit, industrial, real estate, construction, technology, and more.
Self-employed individuals do not qualify for ERC. However, industries, where employees were retained due to their ability to work from home, are eligible.
How is the ERC calculated?
For 2021 wages, the Employee Retention Credit can pay you 70% of a single employee’s wages with a quarterly cap of $10,000. For a simple retention credit example, let’s say you have ten employees who make exactly $10,000 a quarter. That means you’d get $7,000 per employee per quarter for a total of $70,000 across all your employees per quarter and $280,000 for the entire year.
For 2020 wages, the Employee Retention Credit can pay you 70% of a single employee’s wages with a yearly cap of $10,000. For the same company of ten employees, you’d make $5,000 per employee for a total of $50,000.
What period does the program cover?
You can apply for refunds for 2020 and 2021 after December 31st of this year, into 2022 and 2023. And potentially beyond then too.
We have clients who received refunds only, and others that, in addition to refunds, also qualified to continue receiving ERC in every payroll they process through September 30, 2021, at about 30% of their payroll cost.
We have clients who have received refunds from $100,000 to $6 million.
How do I know if my company qualifies for the ERC?
To qualify for the Employee Retention Credit, your business must fall into one of the following categories:
A disruption in business operations beginning after February 15, 2020 and continued due to the coronavirus pandemic. This includes businesses that are fully or partially suspended by government orders or are unable to operate at normal capacity due to the pandemic.
or
A revenue decline. Your eligibility is largely based on your 2019 records. First, your business must have 500 or fewer employees in 2019 to qualify. Also, your company’s quarterly gross receipts in 2020 and 2021 must be at least 20% lower than the corresponding quarter in 2019. This is to prove your company was financially impacted by the Coronavirus lockdown.
On top of that, you must be a private sector or tax-exempt company that dealt with a partial or full shutdown of operations due to COVID-19.
You do not need a revenue decline to qualify, in fact, many businesses had a revenue increase and still qualified that experienced a disruption in business operations.
Can you still get the ERC?
The Employee Retention Credit is still available to be claimed, as long as you retained employees and are fully qualified. However, since the window of the ERC ended, the credit can only be claimed retroactively. To receive the ERC, you’ll need to fill out Form 941-X, the Adjusted Employer’s Quarterly Federal Tax Return, which allows you to retroactively claim the ERC. This applies to businesses that received PPP (Paycheck Protection Program) loans and those that did not.
You have a three-year deadline from the date of the original filing for which you’re hoping to get a retroactive refund.
Will ERC be extended?
Unfortunately, it does not seem likely that the employee retention credit will be extended. The ERC was already extended twice, once by the Relief Act of 2021 and again by the American Rescue Plan Act of 2021
With the passing of the Infrastructure Investment and Jobs Act (IIJA) in November of 2021, the ERC retroactively ended on October 1st of 2021. While you can still claim the tax credit you’re eligible for from January 1st 2020 through October 1st 2021, it is unlikely there’ll be future financial quarters where the ERC is offered.
When does ERC expire?
The employee retention credit was meant to last until January 1st 2022, but ended early with the signing of the Infrastructure Investment and Jobs Act of November 15th, 2021. Due to this, the ERC period ended retroactively at the start of October of 2021 for all businesses except recovery startup businesses.
While the period covered by the ERC is over, it is not too late to retroactively receive your tax credit. You have three years after your initial tax filing to fill out Form 941-X. So, for those trying to claim their 2020 ERC, which they likely would have filed in early 2021 as part of their 2020 taxes, they have until the same date in 2024.
What is the difference between PPP and ERC?
The PPP and ERC have the same goal—to support and help businesses that kept their employees during the Covid-19 shutdown. However, they go about it in different ways, with the money received at very different times.
The PPP stands for the Paycheck Protection Program. It is a Small Business Association-backed loan that helped workforces maintain their employees during the economic downturn of the Covid-19 shutdown. The PPP offers first loans, second loans and the potential for loan forgiveness.
These PPP loans are issued by private lenders or credit unions, although the backing of the SBA means, that as long as the loans are used correctly, the entire loan payment can be forgiven.
The ERC is a tax credit. This means it is not a loan and does not have to be paid back. Instead, a tax credit reduces your final tax bill, saving you money (or possibly making you money back with your tax refund) when tax season rolls around.
Do we still qualify if we already took the PPP?
Can you qualify for both the Paycheck Protection Program (PPP) and Employee Retention Program (ERC)?
Yes, you can qualify for the Employee Retention Program (ERC) even if you’ve already received a Small Business Interruption Loan under the Paycheck Protection Program (PPP). It is also possible to only benefit from one or the other, and not receiving a PPP loan will not impact your ability to receive the ERC tax credit. SnackNation even outlines the differences in their guide to ERC vs PPP.
However, the credits from the Employee Retention Program can only be used on wages that were not forgiven by the PPP—if the PPP already covered it, they are not eligible for the tax credit.
Do we still qualify if we did not incur a 20% decline in gross receipts?
-A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
-Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.
Do we still qualify if we remained open during the pandemic?
– Experienced a decline in gross receipts by 20%, or
– Had to change business operations due to government orders
Many items are considered as changes in business operations, including shifts in job roles and the purchase of extra protective equipment.
Is the employee retention credit 50% or 70% of qualified wages?
The answer is, confusingly, both. It all depends on which year you’re trying to receive the Employee Retention Credit. The ERC was started in the CARES Act of March 2020. This gave employers 50% of employee wages for the year, with a cap of $10,000 in wages.
However, the ERC was expanded by the Relief Act of 2021 and expanded again by the American Rescue Plan Act of 2021. This expansion not only extended the availability of ERC, but also added to it. For 2021 wages, business owners could claim 70% of wages per quarter with a cap of $10,000 per employee.
So, the credit is 50% of yearly wages per employee for 2020 and 70% of quarterly wages per employee for 2021.
Are Employee Retention Credits taxable?
The ERC is not taxable income. You won’t need to pay any of your tax credit back once it is received, assuming you follow all the rules and regulations.
However, the ERC will impact your income tax return. Any employer tax credits will result in a reduction in wages that matches the amount of the credit. The impact of this credit needs to be reflected in the year it was received. So, if the reduction was for 2021, your 2021 tax return must reflect these post-credit wages.
What is considered a 'disruption'?
The IRS says to qualify for the ERC your business needs to have experienced “a full or partial suspension of operations due to government order due to COVID-19”. This can mean the complete shuttering of your business, reduced hours, a change in your business offerings, a drop in customers due to the lockdown, and more.
How do I claim employee retention credit on Form 941?
Since the tax credit can now only be claimed retroactively (since the window for ERC ended after the 3rd quarter of 2021), the only way to claim the credit is with tax Form 941-X, the Adjusted Employer’s Quarterly Federal Tax Return. This form amends your former payroll tax return and changes your formerly submitted information to now include the ERC.
The 941-X form is available on the IRS website. The form leads you through the different information you need to provide. Be ready to report all relevant wages and income tax to receive the ERC. The form is long and complex, so be sure to give yourself plenty of time to fill it out and ensure the information is correct to avoid an ERC scam—there’s a lot of money on the line, after all.
How long does it take to get the Employee Retention Credit?
According to the IRS, you can expect reimbursement between six and ten months after you filed your 941-X form. However, current filers report that reimbursement can be as soon as ONE month with an average of three to five in 2022.
This is a historical event. When will you claim your refund?
Congress has finally passed favorable legislation exclusively for SMALL business owners. It’s simple to get started.
Our Process
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We help you determine whether your business qualifies for the ERC Program.
Thorough Analysis
We analyze your claim and compute the maximum amount you can receive.
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Our team guides you through the claim process, from beginning to the end.
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I am very happy I contacted David. I felt at ease as soon as I contacted him about my situation. The seller did not want to return my deposit after after a failed inspection and many other things. David got right on it and I got my full deposit back. 🙂 David was very responsive (he always replied to my emails within a few hours or even minutes). I would recommend him to anyone. Thanks again David.
Steve G, Lathrup Village, MI
I came to David Soble with an honest question; "Do I have a case?" Not only did he speak with me personally, he took time to quickly review the details of my situation. No other attorney would talk with us without a retainer. Even though he determined we did not have a case, he took the time to show us he cared! Thank you David.
Jane Blackmon
Mr. Soble is a true professional, who is very dedicated to his clients. I've been working with him for a couple of years now, and it has been a pleasure. He is very attentive to his clients' needs, and his knowledge of his field of expertise is impressive. In today's day and age it's frustrating to have to wait days for a response. That's never the case with Mr. Soble. I've always gotten a reply very quickly.
S. Volgyi (Emes Home Inspections)
Oak Park, MI
I needed an attorney and found Soble Law (proven resource) online. I took that leap of faith and called. It was a good decision! David responded quickly, was very professional, easy to talk to, and handled my mortgage issue . David told me what to expect and even did a follow up to see if I had any more questions. There is no doubt that I would use David Soble law again, and would refer others as well.
Deborah Watkins
"l was a client of Mr. Soble and he was very pleasant to work with and he took my case right away. He took time to answer all the questions and concerns that l had. When l called him, he got back to me that same day. We settled on an offer, and then received our check in a timely matter. l recommend the Soble Law firm for all your real estate needs because they take care of business."
Lisa S., Southgate, MI
The balance for one of my credit cards was over $14,000. In less than one week David and his staff were able to negotiate a new balance for less than $4000. We saved over $10,000. This was for just on one of our cards. I have to admit that my husband and I were skeptical at first, but they delivered. I now understand why the meaning behind the name. David and his staff are truly a Proven Resource!
J. James
"Attorney David Soble lives up to his firm's namesake, "Proven Resource." I appreciate knowing that when my clients need a diligent and responsive real estate or contracts attorney, I can easily make the referral to David, David is well worth having on your side."
Dino Lembesis, S. Lyon, MI
-Financial Adviser, Brighton, MI
I am very happy I contacted David. I felt at ease as soon as I contacted him about my situation. The seller did not want to return my deposit after after a failed inspection and many other things. David got right on it and I got my full deposit back. 🙂 David was very responsive (he always replied to my emails within a few hours or even minutes). I would recommend him to anyone. Thanks again David.
Steve G, Lathrup Village, MI
I came to David Soble with an honest question; "Do I have a case?" Not only did he speak with me personally, he took time to quickly review the details of my situation. No other attorney would talk with us without a retainer. Even though he determined we did not have a case, he took the time to show us he cared! Thank you David.
Jane Blackmon
Mr. Soble is a true professional, who is very dedicated to his clients. I've been working with him for a couple of years now, and it has been a pleasure. He is very attentive to his clients' needs, and his knowledge of his field of expertise is impressive. In today's day and age it's frustrating to have to wait days for a response. That's never the case with Mr. Soble. I've always gotten a reply very quickly.
S. Volgyi (Emes Home Inspections)
Oak Park, MI
I needed an attorney and found Soble Law (proven resource) online. I took that leap of faith and called. It was a good decision! David responded quickly, was very professional, easy to talk to, and handled my mortgage issue . David told me what to expect and even did a follow up to see if I had any more questions. There is no doubt that I would use David Soble law again, and would refer others as well.
Deborah Watkins
"l was a client of Mr. Soble and he was very pleasant to work with and he took my case right away. He took time to answer all the questions and concerns that l had. When l called him, he got back to me that same day. We settled on an offer, and then received our check in a timely matter. l recommend the Soble Law firm for all your real estate needs because they take care of business."
Lisa S., Southgate, MI
The balance for one of my credit cards was over $14,000. In less than one week David and his staff were able to negotiate a new balance for less than $4000. We saved over $10,000. This was for just on one of our cards. I have to admit that my husband and I were skeptical at first, but they delivered. I now understand why the meaning behind the name. David and his staff are truly a Proven Resource!
J. James
"Attorney David Soble lives up to his firm's namesake, "Proven Resource." I appreciate knowing that when my clients need a diligent and responsive real estate or contracts attorney, I can easily make the referral to David, David is well worth having on your side."
Dino Lembesis, S. Lyon, MI
-Financial Adviser, Brighton, MI
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