Business Insights

ERC + PPP | Top 5 FAQs you need to know

Updated on June 24, 2024
Category: ERC, Newsletters

Did you have a PPP loan? You might qualify for Employee Retention Credits (ERC) because you retained employees during the pandemic.

We’ve compiled the top FAQs related to PPP’s impact on ERC eligibility, credit amounts, and timing.

Can I file for ERC if I received a PPP loan?

Yes, receiving PPP does not disqualify you for ERC. NEWITY will integrate your PPP loan into your calculation when determining your credit.

What are the qualifications for ERC?

Your business must have A) retained W-2 employees in 2020 and/or 2021 and B) either have experienced a decline in gross receipts or have been impacted by governmental orders. Determining your eligibility based on Part B qualifications is our specialty. Our Shutdown Team is staffed with attorneys that examine the exact government orders that your business was subject to in 2020 and 2021. If the shutdown attorneys determine that you qualify, your eligibility is documented in a memo specific to your business and operations.

Does PPP forgiveness count towards my gross receipts?

No, PPP forgiveness does not contribute towards gross receipts.

Does my ERC count as income when I receive it?

No, once you receive ERC you must reduce deductions for wages on your tax returns for the years in which you are eligible for ERC.

How long does it take for the IRS to send a refund after filing for ERC?

In our experience, the IRS can take up to nine months to issue a refund check. Our ERC FastTrack program enables qualified businesses to receive their ERC claim in as little as five days after filing with the IRS.

Our ERC eligibility screening process is complementary and does not impact your credit score. See how much you may qualify to receive in 15 minutes or less in your NEWITY Smart Portal.

We are no longer accepting ERC applications. Secure affordable funding through an SBA 7(a) loan.

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ERC + PPP | Top 5 FAQs you need to know

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