• ERC Qualification Form

  • What is ERC and how do I qualify?

    The Employee Retention Credit (ERC) was established under the CARES Act to offer tax credits that can be refunded to companies that maintained their staff members during the COVID-19 pandemic. Companies can be eligible for the credit based on one or more criteria, including revenue reduction, disruptions from supply chain issues or operational disruptions due to government mandates. To obtain the ERC, qualified taxpayers need to submit revised employment tax returns for each relevant quarter. By answering the subsequent inquiries, you can determine if you meet the eligibility criteria for the credit and what amount you can anticipate receiving.

    1)  Complete and submit the following qualifying survey.
    2)  Provide requested documents.
    3)  Receive your Credit Analysis Report, acknowledge and engage Funders to process your claim.

    To complete this survey, please have the following info ready:

    • Average employee headcount in 2020 and 2021
    • Gross revenue by quarter 2019, 2020 & 2021
    • Explanations (in your own words) how supply chain issues or governmental orders directly or indirectly impacted your business.

    The selections you make and the explanations you provide will ultimately be used to file your claim. It is important to be specific. Please do not guess or embellish.

     

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  • Are you a federal, state, or local entity?

    The federal government, the governments of any state or political subdivision thereof, and any agency or instrumentality of those governments are not Eligible Employers and are not entitled to receive the Employee Retention Credit. However, tribal governments and tribal entities may be Eligible Employers. Read More

  • Calculations (HIDDEN)

  • When did the business start?

    Businesses can qualify regardless of start date; however, a business that started on or after February 15, 2020 is classified as a Covid-19 recovery startup business and is subject to a different set of rules. The start date is essentially defined by when the employer "began carrying on a trade or business". For specific details regarding start dates, reference IRC section 162. 

  • 2019 Full-Time Employees

    A full-time employee (FTE) is classified as someone that worked at least 30 hours in a week, or 130 hours in a month.  When answering this question, keep in mind that since employees may have come and gone during the year, the number should be your best estimate of the average number of employees for the year.

    Tally the average FTEs by month in 2019, total them, then divide by 12 to get a good estimate. We will derive the actual figure when we review your payroll reports. 

    Part-time employee wages do qualify for the ERC program (but are not considered for this FTE calculation). We will consider part-time employees when calculating your credit. 

    Note: IRS Aggregate Rules (ownership in other businesses) do apply. To learn more about this rule and the impact on your qualifications read here: Aggregated Employer.

  • ERC Qualification Options

    There are three ways to qualify for ERC. Please answer the questions in the following sections to determine your elgibility for the program.

    1. Revenue Reduction
    2. Supply Disruption
    3. Full or partial suspension

  • Qualifier 1

    Revenue Reduction

    The most straightforward way to qualify for the Employee Retention Credit is from a qualified revenue reduction during the qualification period of the program.

     

    Revenue Reduction Qualifications

    • 2020 - 50% reduction of gross sales for the 2020 quarter as compared to the same quarter in 2019. When/if the revenue reduction in 2020 gets back to 80% of the 2019 level, the qualification ends.
    • 2021 - 20% reduction of gross sales for the 2021 quarter as compared to the same quarter in 2019. (or 2020 if you were not in business during the 2019 quarter). The alternative lookback option allows the business to use the previous quarter compared to the same 2019 quarter to qualify. 

  • Qualifier 1

    Revenue Reduction

  • ex: Q3 of 2020 had less than 50% of gross receipts as compared to Q3 in 2019

  • Qualifier 1

    Revenue Reduction

  • Qualifier 1

    Revenue Reduction

  • In any quarter of 2020 did your gross receipts return to 80% of pre-COVID levels?

  • Qualifier 1

    Revenue Reduction

  • Qualifier 1

    Revenue Reduction

    The most straightforward way to qualify for the Employee Retention Credit is from a qualified revenue reduction during the qualification period of the program.

     

    Revenue Reduction Qualifications

    • 2021 - 20% reduction of gross sales for the 2021 quarter as compared to the same quarter in 2019. (or 2020 if you were not in business during the 2019 quarter). The alternative lookback option allows the business to use the previous quarter compared to the same 2019 quarter to qualify. 

  • Qualifier 1

    Q1 2021 Revenue Qualifier

  • Qualifier 1

     2021 - Q1 Alternative Quarter Revenue Qualifier

    Since you did not have a 20% revenue reduction in Q1 2021 as compared to Q1 in 2019, you can utilize the previous quarter to potentially qualify.

  • Qualifier 

    Q2 2021 Revenue Qualifier

  • Qualifier 1

    Q3 2021 Revenue Qualifier

  • Qualifier 2

    Supply Disruptions

  • Supply chain disruptions are a common qualification for businesses that rely on vendors and suppliers for their business to function properly. This qualification must have resulted from a government suspension order to your supplier that resulted in the supplier not being able to deliver critical goods, but may continue beyond the original suspension order. The specific requirements for this qualification are listed below.

    These impacts qualify a company regardless of revenue gain or loss.

    Please reference the IRS notices pertaining to supply chain disruption qualification: Notice 2021-11 & Notice 2021-20

    Supply disruption qualifications:

    • More than Nominal Impact - The supply chain disruption due to vendor shutdowns must have resulted in a more than 10% impact on your business. This can be directly from the reduction of sales from the inability to procure the supply item, or from the impact not being able to procure the item had on your business. To calculate the more than 10% impact, evaluate the impact of the supply item on your 2019 gross receipts. For example, if you were not able to procure pallets for the shipping of foods, consider how much of your business relied upon pallets in order to operate in 2019. If it was more than 10%, this qualification can apply.
    • No replacement Supplier - Your business must not have been able to find a reasonable replacement supplier for the supply item affected by the government suspension order.

  • Qualifier 2

    Supply Disruptions

  • Did you experience a supply chain disruption due to a COVID government-ordered suspension on your supplier?

    The cumulative impact of the disrupted supply items must have directly or indirectly represented more than 10% of gross sales in 2019. This does not mean that your revenue must have decreased to use this qualification. If you were able to find a replacement supplier that resulted in less than 10% impact on your business, this qualification does not apply. 

  • In which 2020 quarters was your business impacted more than 10% due to the cumulative impact of any disrupted supply items?

     This does not mean revenue must have decreased during the 2020 quarters.

  • In which 2021 quarters was your business impacted more than 10% due to the cumulative impact of any disrupted supply items?

     This does not mean revenue must have decreased during the 2021 quarters.

  •  Qualifier 3

    Full or partial suspension 

    The partial or full shutdown qualification is based on a "suspension test" to determine whether your operations were partially or fully suspended due to a Covid-19 governmental order. Keep in mind that a government restriction may have had a direct impact on your operations even though that shutdown order wasn't given to you directly.

    Important: This qualification only applies during the period of the actual government order. Since there were very few government shutdown orders during 2021, the actual shutdown types of this qualification mainly apply to the 2020 quarters. However, if the impact of shutdowns affected your business beyond the actual shutdown period, this qualification may apply.

    Please reference the IRS notices pertaining to suspension qualification: Notice 2021-20, Notice 2021-33 & Notice 2021-49

     

    Full or partial suspension qualification requirements 

     - More than Nominal Impact - The partial suspension from a government order must have had a more than nominal effect, which means it affected more than 10% of business operations. This impact can come from a reduction in business hours of 10% or more- or a suspension of your business operations that represented 10% or more of gross receipts as compared to 2019. (This does not mean that a 10% reduction in sales is required to qualify, but the order must have suspended at least 10% of your revenue-producing operations.)

    Hourly example: Government orders required a restaraunt to close 2 hours early due to curfew requirements. The 2 hours represented 15% of the business working hours. This business qualifies for the period affected by the government order.

    Gross receipts example: Government orders required a radiology clinic to stop elective procedures during Q2 & Q3 of 2019 and determined that the suspended elective procedures represented 18% of its total gross receipts during those quarters. This business qualifies for these two quarters.

     - Inability to Convert to Telework - If the business was able to effectively convert to a remote work environment that mitigated the nominal impact on the business, they do not qualify for the suspension qualification. 

  • Qualifier 3

    Full or partial suspensions

    The cumulative effect of the full or partial suspensions must have had a more than 10% impact on your business operations when considering the gross receipts of that portion of your business in 2019. This does not mean that your revenue must have decreased to use this qualification.  

  • Other Information

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    Pick a Date
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    Pick a Date

  • Please list any family members (relatives) on payroll and their relationship to the majority owner

    (Majority owners and their family members (relatives) are excluded from ERC calculations regardless of employee status and payroll classification; however, all other company W2 wage earners may quality. Read eligibility details here)

  • Congratulations - Survey Complete!

    Based on your answers, you qualify for the ERC program!
  • Image-66

  • Congratulations! Based on your answers, you qualify under the Recovery Startup Business Qualifier. Under this qualifier, you are qualified to receive up to $50,000 per quarter. 

  • You're almost done. On receipt, we'll promptly review your claim and respond with our Credit Estimate Analysis, detailing the maximum amount of your credit and the next steps. 

     

    Please be sure to add the following email and domain to your safe sender list: support@funders.com

  • Please confirm that your information is correct:

  • Qualifications Detail

  • Qualifiers 2020 2021
    Q2 Q3 Q4 Q1 Q2 Q3
    Revenue Reduction {revenueq22020}  {revenueq32020}   {revenueq42020}  {revenueq12021} {revenueq22021}  {revenueq32021} 
    Supply Chain Disruption {supplyq22020} {supplyq32020} {supplyq42020} {supplyq12021} {supplyq22021} {supplyq32021}
    Full or Partial Shutdown {shutq22020} {shutq32020} {shutq42020} {shutq12021218} {shutq22021} {shutq32021}
    • REVENUE REDUCTION TEST 

    • Based on your answers to questions regarding your business's gross receipts, you qualify for the ERC under the Revenue Reduction category for the quarters listed above.

    • Your business does not qualify with the Revenue Reduction qualifying option.

    • SUPPLY CHAIN DISRUPTION TEST 

    • Your business does not qualify with the Supply Chain Disruption option.

    • Based on your answers to questions regarding your business's supply chain disruption issues, you qualify for the ERC under the Supply Disruption category for the quarters listed above.

    • You provided the following description of supply chain disruptions for 2020:
      {provideA} 

    • You provided the following description of supply chain disruptions for 2021:
      {provideA102}

    • FULL OR PARTIAL SHUTDOWN TEST 

    • Your business does not qualify with the Full or Partial Shutdown Test option.

    • Based on your answers to questions regarding your business's full or partial shutdown due to government authority, you qualify for the ERC under the Full or Partial Shutdown category for the quarters listed above.

    • - Reduction In Hours: {typeA146}

    • - Inability to Access Equipment: {briefDescription}

    • - Reduction in services offered: {briefDescription150}

    • - Reduction in Capacity: {briefDescription152}

    • - Travel Restrictions: {briefDescription154}

    • - Actual suspension: {briefDescription156}

    • - Other suspension: {briefDescription158}

    •  

  • W-2 Wager Earners

  • The number you provide here is used to provide an estimate of your credit based on the survey answers. An exact count will be derived from the payroll documents you provide.

  • Your Estimated 2020 Credit is: ${yourEstimated}

  • The number you provide here is used to provide an estimate of your credit based on the survey answers. An exact count will be derived from the payroll documents you provide.

  • Your Estimated 2021 Credit is: ${yourEstimated204}

  • Great news! Based on your answers you qualify for the ERC Recovery Startup Business Credit. This credit applies for 3rd and 4th quarters of 2021. The credit is up to $50,000 per quarter. Click "next" to provide your information.

  • Estimate Total Credit Amount

    Employers are allowed to claim a credit for retaining staff during the last 3 quarters of 2020 and the first 3 quarters of 2021. Your information has been used to provide an estimate of your total credit. The actual figure will be derived after a review of the company's payroll records and other documents that may be requested.

  • Your Estimated Total Credit is: ${yourEstimated209}

     

    •  

  • Based on your responses, you do not qualify for the ERC program

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