Frequently Asked Questions

My business received the PPP, can I still qualify for the Employee Retention Credit (ERC)?

YES. Although the ERC was initially not available to companies that received the PPP, a retroactive amendment was passed in December 2020 which allows companies to be eligible for the ERC even if they received one (or both!) of the PPP through the SBA. Employers do need to identify the wages paid with the PPP and cannot use those as qualified wages for the ERC.

We did not have a drop in revenue, are we still eligible for the ERC?

YES. Companies can either qualify due to a drop in gross receipts over a certain threshold -OR- due to a full or partial suspension in business operations (to include changes in operations due to government and industry-wide mandates and their effects on day-to-day operations). We have helped many businesses who have been more profitable than ever but still qualified due to government mandates.

We have not experienced any direct government mandates or suspensions of operation during the pandemic, can we still qualify?

YES. The law, and subsequent IRS guidance, has made it clear that your business operations only need to have been impacted by ANY local, state, or federal government order in more than a nominal amount.

We are an “essential” business, are we eligible for the ERC?

YES. “Essential” businesses can qualify the same way, by meeting either the revenue drop OR government order eligibility requirements. The law does not differentiate between essential and non-essential businesses.

Why haven’t I heard about this from my financial advisor?

The ERC has gone through significant changes and updates since it was first introduced in the CARES Act. For any professional not solely focusing on the ERC, it may have been too much to keep up with. There is still significant misunderstanding of the program based on previous versions of the law and, unfortunately, many business owners are disqualifying themselves due to poor guidance or misinformation. Understanding the full intricacies and subsequent guidance of the ERC law is our specialty, and we encourage you to let us take a look to see how you can qualify.

Why should I pick Clarity over some of the other tax consulting companies that handle the ERC?

Clarity was founded because we saw two major problems affecting business owners in regard to the ERC. The first was that too many companies who could qualify for these credits either don’t know about the ERC, or assumed they were ineligible. The second, and more disturbing issue, was that consulting firms were taking advantage of this confusion and getting companies to sign contracts paid with a percentage of their ERC credits. Many companies were footing bills for hundreds of thousands of dollars for consulting services. Imagine having to pay someone 20%-30% of your PPP amount when you filed to receive it. The same thing is happening to unsuspecting businesses with employee retention credits.

Our goal is to educate as many businesses as possible on the ERC and, should they qualify, only charge a flat fee to assist them in compiling, quantifying, and filing for the credits.