ERC FACTS

ERC Basics 

What it is: Economic stimulus payment 

• First introduced in CARES Act on March 25, 2020  
• 2020: 50% wages, max of $5,000 per employee  
• 2021: 70% wages, max $21,000 per employee.

• Fully refundable tax credit against employer portion of Social Security/Medicare.  
• Paid to you directly via a check  
• Not a Loan and Not Earmarked.  
• Claim by filing amended 941-X quarterly returns taking the ERC credit on Line 18 & 26.

Most Common Misconceptions About ERC 

• I do not qualify because my business: 

         • Did not have a revenue decline.  

         • Did better during COVID.  

         • Did not shut down.  

         • Received PPP Loans  (Paycheck Protection Program)  

         • While these are factors in the process, these do not disqualify you.   

Qualification Process 

Fully or partially suspended operation during any calendar quarter in 2020 and/or 2021 due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19 (includes working from home).

         • Revenue sectors showing a decline?  

         • Gross Receipts Reduction 2020 and 2021 vs. 2019? (Quarterly)   

         • Additional expenses or costs to the business to deal with COVID?  

         • Trade Shows & Conferences - gone virtual? Not attended?  

         • How do you engage with customers and prospects?  

         • What changes did your business make in response to COVID-19?  

         • What do you not do now or during COVID that your business used to do?  

         • How were your office operations impacted?  

         • How were your warehouse and distribution operations impacted?  

         • How were your customer-facing operations impacted?  

         • How were your suppliers and key customers impacted?    

Scope of Our Engagement  

You  

Provide us with contact information & introductions to your CPA, bookkeeper / controller / payroll  

Complete our basic client questionnaire  

Provide us with payroll reports from 2019 & 2020. 

Provide us with PPP Forgiveness Application. FFCRA, RRF, SVOG.  

Provide us original 941 returns from your payroll provider  

Us  

Coordinate tax items with your CPA firm   

Coordinate payroll items with bookkeeper / controller  

Document qualification/compliance based on your questionnaire  

Calculate Wage Attribution between PPP and ERC  

File 941-X amended returns with the IRS        

Guarantee and Audit Support  

We DO NOT guarantee any specific refund amount until we have payroll data  

We DO guarantee that our calculations are accurate  

We DO guarantee that our filings with the IRS as a paid-preparer are compliant with program rules and regulations  

We DO provide long-term audit support and carry E&O (errors and omissions) insurance coverage with $1 Million limit per claim   

Service Fee Structure  No financial risk of working with Jorns & Associates; a contingency fee of 20% on amount of credits delivered (See Note 1)  

Fully refundable deposit of $2,600 due at signing.  

Software-performed calculations eliminate human error  

Audit-ready package including compliance services  

Note 1: A deposit towards the contingency payment is customarily requested to begin the engagement to ensure client is timely with delivery of required payroll data and 941s. This deposit is subtracted from the amount due when Client receives the tax credit refund check. 

This deposit is fully refunded if we cannot submit a claim for any reason whatsoever. 

Refundable $2,600 Deposit     

Next Steps And Timeline  

         • Sign the Engagement letter.  

         • Remit the Fully Refundable Deposit.  

         • Provide Completed Questionnaire and the Required Documents.  

         • Revenue Spreadsheet  

         • 941s  

         • Payroll Documents  

         • PPP Details  (Paycheck Protection Program)  

         • Onboarding Specialist is Assigned to Your File.  

         • CPAs Prepare Filing Documents.   

         • Client Review the revised 941x documents.  

         • Documents Signed and we mail all documentation to the IRS.  

         • In approximately 14-20 weeks, you will receive your check from the IRS.  

         • We will invoice you for the remaining balance due after you receive payment.