Business Outline:
Alex is the business owner of a law firm in NYC. His business was founded in 1989 and has maintained eight employees over the past four years. Alex’s law firm received two rounds of PPP totaling $82,100.
This case study is based on a real NEWITY Member and details NEWITY’s ERC Fast Track process, including what to expect and an accurate ERC Fast Track refund calculation for this business. Note, some details have been altered for privacy reasons.
Alex’s law firm is one of many that was impacted in 2020 and 2021. Government lockdowns and the stark reduction in walk-in appointments severely impacted business.
NEWITY’s no-cost ERC eligibility review along with the cash now option motivated Alex to see if he would qualify for this last round of CARES Act funding.
Step One: Submit Application
The application is split out into seven sections: Refund Estimator, ERC Cash Options, Application Details, Business Information, Business Details, Review and Submit, Upload Documents.
Alex enters in his count of employees for each listed year and sees his estimated maximum refund is $208,000. While Alex knows this is a maximum, the number is much larger than he expected.
On the following screen Alex sees his ERC options: Cash Now or Cash Later. NEWITY’s ERC Fast Track option allows businesses to obtain their ERC in as few as five days for 20% of your ERC refund compared to waiting 9-12 months for the IRS for 18% of your ERC refund. For Alex’s credit of $208,000, the $4,160 difference between ERC and ERC Fast Track was more than worth it to get his refund 50x faster than IRS standard processing times.
After Alex answered a few other questions regarding other pandemic-related government support and business ownership, it was time to review and submit the information he provided.
Then Alex moved onto the Upload Documents stage where he found that his accounting and payroll platforms could automatically integrate into NEWITY’s application, which allowed Alex to upload his income statements, gross receipts, and annual payroll details in less than five minutes.
When Alex made it to Phase Two documents, he had to find his PPP forgiveness applications, Form 941s, and business tax returns. With the help of his Xendoo accountant, he was able to finish his application one evening after work.
Step Two: Revenue Decline Calculation
After submitting his documents, Alex was contacted by one of NEWITY’s Calculation Specialists, Sarah, to finalize all his ERC calculation details. After Sarah’s notes were submitted, Alex learned he was approved for three quarters of ERC based on revenue decline.
Step Three: Government Shutdown Calculation
For the remaining ERC eligible quarters, Alex had a phone call with NEWITY’s Shutdown Team to determine his eligibility based on governmental shutdowns. During this call, Alex learned he qualified for an additional two quarters of ERC.
Step Four: Approval
Alex’s final application was sent to review and close through NEWITY; Alex waited for the results.
Alex received an email from NEWITY’s Co-Founder and Co-CEO, Luke LaHaie, confirming that his law firm was approved for five quarters of ERC totaling $84,130 for a total return of $67,304 for Alex with his selection of ERC Fast Track.
After six days of waiting, Alex received his ERC refund via direct deposit to his bank. He used this ERC cash to contribute to office renovations and raises for all staff, including himself.
We are no longer accepting ERC applications. We’re happy to help you access affordable capital through an SBA 7(a) loan.