Optional

If there is someone else at your company that handles your payroll and you would like us to contact them, please provide their information below:

The Employee Retention Credit (ERC) is a substantial stimulus program developed by the CARES Act. This program gives companies a refundable tax credit for retaining employees during the pandemic. These few questions can help us evaluate if your company qualifies. City ERC will file for the quarters you qualify for. 

With this questionnaire, we analyze your tax credit amount owed. Our team will process and file your return after our analysis is approved and accepted. 

Please have the following information available about your business before you begin this questionaire:

1. Average full-time employees for 2019 (a full-time employee works 30+ hours each week.)
2. Gross receipts for 2019, 2020 & 2021 (excluding PPP loans.)
3. PPP Loan information (if applicable.)

• CITY ERC LLC does not provide legal, tax, or financial advice. Users of this website should contact their own lawyer or CPA for legal or financial advice. 

Please answer the questions below to the best of your ability:

 Please Note: Your answers DO NOT get filed to the IRS.

•  A full-time employee works at least 30 hours per week or 130 hours per month.

Note: If you own more than 50% of various companies, you must combine all of your full-time employee for this question. 

Example: A majority owner of ABC company has 50 full-employees. The same business owner is the majority owner of 123 company which has 75 full-time employees. The IRS aggregate rule requires the combination of both companies' personel counts for ERC. Both companies can qualify for ERC, however; both would be classified as having over 100 employees.

Option #1: Revenue Reduction

One of the best ways to receive the Employee Retention Tax Credit is to have a qualified revenue decrease during the program's qualification period. See requirements below:

• 2020: 50% decrease in quarterly gross sales compared to the same quarter in 2019. When or if the gross receipts returns to 80% in comparision to the same quarter of 2019, then the qualification period ends.

• 2021: 20% drop in revenue based in comparision to the same quarter of 2019, (or 2020 if you were in business during the quarter in 2019.) 

Note: For any periods you qualify for revenue reduction, we will request necessary documents to substantiate your claim. 

Option #2: Partial or Full Suspension

The partial or complete shutdown qualification is based on a "suspension test" to show operations were fully or partially suspended due to a government pandemic order.

A partial suspension from a government order that had a nominal impact on your business. This impact might come from a reduction in business hours or a reduction in capacity, etc. A drop in sales is not needed, but the order must have ceased at least 10% of your revenue generating operations.

Note: This only applies during periods of shutdowns (full or partial) mandated by the government.

IRS notices pertaining to suspension qualification: Notice 2021-23 & Notice 2021-33.

ERC Full or Partial Suspension Qualification Requirements:

• Inability to travel
• Reduction in operating hours
• Inability to access equipment
• Capacity restrictions
• Inability to convert to remote work

Full or Partial suspension IRS examples:

• Example #1: If a government order lets an essential business stay open, and if more than a small part of an employer's business operations are stopped, it may be considered a partial suspension. This is true even if the business is essential.
• Example #2: Employers that could not get the remote work capabilities to run their company normally qualify for a partial suspension (IT support, etc.) It also applies if employee tasks are not portable or if employee presence is crucial.
• Example #3: If a government order closes an employer's physical workplace, but the workplace may stay open for other specified reasons, the employer's activities are regarded to be partially suspended if more than a nominal portion of businesss cannot be undertaken.
• Example #4: A restaurant must close or limit dine-in eating because of government directives, but can still operate its drive-through or carry-out service. This would be considered partially suspended.

Note: For any qualifiying periods you must describe the impact on your company.

• Example: Q3 of 2020 had less than 50% gross revenue in comparison to Q3 of 2019.

Full or partial suspensions must have had a nominal impact on your business operations based on 2019 gross receipts.

Note: Fill out this portion to the best of your knowledge. If there is anything you are unsure of, we can always verify it later upon completion.