Frequently Asked Questions

Want to know more about SRB Capital? What the ERC Refund is? How the process works? Who qualifies? How much is the refund for? The answers to these and more you will find below.

What is the Employee Retention Credit (ERC)?

The CARES Act Employee Retention Credit (ERC) is a payroll tax refund equal to 50 % of “Qualified Wages” for employers who qualify for this refund. The Employee Retention Credit (ERC) applies to qualified wages paid after March 12, 2020, and before January 1, 2021. The employer receives up to a $5,000 refund for the first $10,000 in wages/employee.
If qualified, the employer will continue to receive up to 70% of all qualified wages/employee for quarter 1, 2021 plus 70% of all qualified wages/employee for quarter 2, 2021 up to $7,000 of qualified wages/quarter. The maximum refund any employer can receive is $26,000/employee for all 2020 and 2021 periods once they are properly qualified.

Why have I not heard of this Refund before?

The ERC program was drastically updated at the end of 2020. It had gone unused and was only discussed as an afterthought. Now it should be a headline most business owners have stumbled across. As PPP weans, be prepared to hear more and more about ERC.
CPAs know about the ERC; few know of the changes. The late change in program structure did not leave time for most CPAs to change course. Most were geared up for the Tax Season.

Why doesn't my payroll company or CPA do this program?

Economic business and tax incentive programs like the Employee Retention Credit (ERC) have particulars that need to be considered for applying, with an accurate and maximized figure that will stand ground if audited.
It is important to fully document processes and procedures, organize your records, and avoid any risk areas in advance of a potential IRS audit of the claim, which may come years later.
Issues such as normalizing pay rates, documenting qualification criteria methodology, validating other requirements, allocating healthcare expenses to the appropriate time periods, etc. The use of experienced consultants may help to document and streamline the process which would include gathering and analyzing multiple data elements and logging required filings.

How long does it take to get my Refund?

The refund when using the paper sign and send 941-X form takes approximately 24 to 36 weeks. E-Filing with an IRS-approved partner can reduce that time. According to the IRS, if your refund (after successful submission of the 941-X) is not processed within 20 weeks, it will be assigned as a case file.

This seems too good to be true... What is the catch?

No catch! Businesses that qualify are required to perform all the work upfront, which is why you need SRB Capital. We know the program front to back and will have you ready for filling with just a little document search on your end.

Can I get an ERC Refund if I also took part in the PPP?

ABSOLUTELY! This is a common misconception.  The only rule is that you cannot claim ERC for wages that were paid for by PPP loans. Our custom developed software not only ensures they are kept separate, but it optimizes the allocations of each to get you as much ERC as possible.

Are there restrictions on how I use the Refund?

NONE. This is a refund on payroll taxes you have already paid. The money is yours to keep and you can spend it in any way you choose.

How much is the Refund?

The ERC payroll tax refund is equal to 50 % of up to $10,000 “Qualified Wages” for each employee for 2020. The refund is up to 70 % of $10,000 for each quarter of 2021, for each employee! The total refund cannot exceed $26,000 per employee and is in addition to any PPP funds your business has already received.

Do I have to pay it back?

NO. The Employee Retention Credit is just that, a CREDIT. You may hear us call it a Return as well.

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