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Company Payroll Refund CARES Act Taxes Contact Us

Why haven't I heard about ERC before?

PPP was heavily marketed by the SBA, while ERC is claimed directly through the US Treasury. Along with our bank partners, it’s our mission to educate you and obtain for your business the payroll tax refund that it’s entitled to.

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How is ERC different from the Paycheck Protection Program (PPP)?

PPP was a forgivable loan. ERC returns the payroll taxes that your business has already paid. Once your business receives the ERC funds from the US Treasury, it does not have to pay back the credit.

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What is the Employee Retention Credit (ERC)?

ERC is a refundable payroll tax credit. Born out of the same CARES Act as PPP, its aim is to provide economic relief for small and medium businesses who retained employees during the COVID-19 pandemic. Initially, eligible employers could only take either PPP, or ERC. In 2021, as part of the Consolidated Appropriations Act, Congress amended this provision, allowing businesses to apply for both.

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How do I know if my business qualifies?

The IRS expects 70-80% of SMBs are good candidates for taking the ERC. If your business experienced disruptions to commerce, travel, or group meetings due to a government order, it might qualify! This includes supply chain disruptions, price increases, reduced hours, reduction in goods or services offered, were unable to travel, or attend conventions. Talk to one of our Refund Specialists to find out more.

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Do I have to pay this back?

Unlike PPP, this is not a loan. It's money for your business, and it's up to you how you use it.

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My business was profitable or deemed essential, can I still qualify?

Both essential and non-essential businesses alike could qualify, and a decline in revenue may not be required. Many of our clients even had increases in sales, but still experienced disruptions or were negatively impacted.

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What is your fee and when do we pay it?

There are no up-front fees or obligations to receive your refund analysis. Once engaged in recovering your business’ refunds, our fee is 25%, with no hidden costs. You will never come out of pocket to pay our fee. We’re paid only as your business receives its refund check. Our fee includes the preparation of your claims by a professional CPA or tax attorney who is experienced in qualifying, substantiating, calculating, and claiming ERC refunds.

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How long will it take to get my refund?

Multiple factors can affect the amount of time it takes to start receiving your business's refund and checks are issued for each qualifying quarter. Typically, our clients receive their first check in 4-7 months following the submission of a claim to the IRS, with subsequent checks coming after that.

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How is the refund calculated?

Determining the proper amount of a refund is a complex accounting process. Although these are payroll tax credits, what you’ve paid in payroll tax has no bearing on your ERC calculations. The refunds are based on many factors including qualifying quarters, number of employees, hours worked, wages paid and if applicable, PPP loans, group health premiums and participation in other government programs to name a few.

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But I've been told my business does not qualify.

There is no upfront cost to see how much your company may recover. Our clients have claimed substantial refunds for qualified businesses—sometimes for companies that were previously told they did not qualify.

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What should I expect after the application is submitted to the IRS?

Due to the Employee Retention Credit, the IRS is currently working through a backlog of amended Form 941 filings. This means you could experience an extended wait time before you receive your refunds.

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How do I check the status of my ERC refund?

To check the status of your refund, you can call the IRS directly at (877) 777-4778. You can also always reach out to your Customer Service Champion for any updates throughout your refund process.

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Can I earn more cash while awaiting my refund?

Refer your friends to us and you can earn even more money for every successfully qualified application.

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Why do I need a refund specialist?

There are over 70,000 pages of tax code; it’s impossible to be an expert on all of them. ERC is all we do. It’s like the difference between your family doctor and a neurologist. By concentrating on this one program, our strategic partners understand the intricacies and nuances involved in determining your eligibility and accurately calculating your refunds.

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Why is Innovation Refunds SOC 2 certified?

SOC 2 is a voluntary compliance standard developed by the American Institute of CPAs (AICPA) for service organizations. Our SOC 2 certification confirms that Innovation Refunds has implemented the necessary cybersecurity controls to safeguard your data.

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How much can my business expect to receive from the ERC?

Your business could potentially receive up to $26,000 per employee under the legal maximum limit. However, the average refund amount is lower for most companies and depends on the accuracy of your payroll records, involvement in other relief programs, healthcare statements, owing back taxes, any deductions you may have previously taken, and other factors. These factors may also reduce the gross refund amounts, which may mean that net refund is lower. Check out The ERC & Innovation Refunds by the Numbers to learn more about your business’ potential eligibility.

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Will you work with my CPA to claim the ERC?

Yes, we're happy to work with your CPA. Our independent tax attorneys are highly-qualified and trained on complex ERC tax code and will partner with your CPA to ensure your business is qualified.

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Can my business get an ERC refund if we already claimed PPP?

The short answer is yes. Of course, it depends on situational factors. You cannot claim ERC on wages paid with the funds from a forgiven PPP loan.

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What can my business use the ERC refund for?

If you qualify for the ERC, there are many uses for putting your tax refund to good use – things like paying debt, hiring or retaining employees, and growing your business.

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If my business did not shut down during the pandemic, am I eligible?

Your business did not have to face a total shutdown to qualify for the ERC – a partial suspension or modification of operations due to governmental orders may help you qualify.

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How do I apply and file for the ERC?

Start here. Innovation Refunds can help you check your eligibility, file your claim, and if eligible, collect your ERC tax refund.

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If my church is deemed an essential business, can it still qualify for the ERC?

Generally, yes. The IRS allows essential organizations to claim ERCs if more than a “nominal portion” of a non-essential portion of business operations were suspended by governmental orders. Or if you were ordered to limit your capacity to just 50% of your worship facilities. This may meet the partial shutdown test. A qualified independent tax professional can help.

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What should I know about a minister’s wages and the Employee Retention Credit?

The tax credit can’t be claimed for pastors and clergy, due to the fact they’re already exempt from federal employment taxes upon which the credit is based. However, employers may include qualified wages paid to non-clergy employees during the time period for which the credit is being claimed.

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Are 501c3 eligible for employee retention credit?

The short answer is yes. The ERC is credited through payroll taxes, so nonprofit organizations are included in the package.

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If your church does not file a tax return, is it still eligible for the ERC*?

The short answer is yes. Although the ERC was originally designed for businesses, it is a tax refund that is applicable for anyone who kept employees on payroll during the pandemic – including churches and tax-exempt organizations.

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If our church did not experience a significant decline in gross receipts, is it still eligible?

An increase in revenue during the eligible quarters will not necessarily disqualify you. The ERC is determined on a quarterly basis, and failure to meet the gross receipts test in one quarter doesn’t prohibit qualification from another quarter.

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What are considered gross receipts?

Gross receipts are defined by the IRS as “the total amount the taxpayer receives from all sources during its annual accounting period, without subtracting any before deducting any costs or expenses.” The simplest explanation is that gross receipts are the income you receive from your business.

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What is limited commerce under the ERC?

Limited commerce is a partial suspension of business operations due to a government order. A partial suspension has occurred if more than a nominal portion of business operations was suspended, or a government order significantly affected operations.

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Who is Innovation Refunds?

Innovation Refunds is a dedicated team of professionals that assists small and medium-sized businesses with claiming the refunds they qualify for. Our mission is to empower SMBs to drive growth and innovation by tapping into often overlooked financial resources.

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Will you work with my CPA?

We’re happy to work with your CPA. Navigating the ERC can be complex, especially given the multiple rule revisions since its inception. To thoroughly assess eligibility, our independent tax attorneys will work with your CPA to create a narrative based on how COVID impacted your business. If eligible, they’ll combine your COVID narrative with the gross receipts test, the full or partial suspension test, and help you gather the required documents to support the claim.

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What is included in your fee?

Our fee includes eligibility assessment, claim preparation, updates on claim status, any additional support, and audit protection at no additional cost. The experience of our independent tax attorneys, who are trained to interpret tax code, allows our customers to identify the industry-specific deductions they may be eligible for. There is no upfront cost, we only get paid when you do.

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What is included in the audit protection?

We understand you and your CPA may be worried about being audited when filing for the ERC, and we want you to have peace of mind when working with us. That’s why our customers are covered in case of any unexpected IRS audits related to our ERC work. If that happens, Innovation Refunds will provide an independent tax attorney to support you through the audit process at no extra cost.

If, due to any errors made by our independent tax professionals, there are any penalties owed to the IRS, we've got your back. Innovation Refunds will take care of those penalties for you.

If there's any payback needed to the IRS, we’ll refund our fee proportionate to the amount of the payback. We're here to support you every step of the way.

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Is it too late to claim the ERC

Despite what you may have heard, the ERC isn’t running out any time soon. To claim ERC funds for eligible quarters, all documents must be submitted by April 15, 2024. Our team of independent tax professionals will help you get this done easily and ensure a smooth process from start to finish.

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How is the Employee Retention Credit for new businesses different?

New or startup businesses opening after February 15, 2020, are eligible for the ERC. According to the IRS, “A recovery startup business can still claim the ERC for wages paid after June 30, 2021, and before January 1, 2022. Eligible employers may still claim the ERC for prior quarters by filing an applicable adjusted employment tax return within the deadline set forth in the corresponding form instructions.”

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