ERC Filing Deadlines

An eligible employer claiming a refundable credit for any quarter in 2020 must file its 941x forms by April 15, 2024.

An eligible employer claiming a refundable credit for any quarter in 2021 must file its 941x forms by April 15, 2025.

Essential Forms & Marketing

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Referral Partner Center

Hello (First Name),

Have you heard of ERC, the Employee Retention Credit? ERC is substantial stimulus available to a business that chose to retain their employees during the Covid-19 pandemic. A business with a minimum of 5 full time W2 employees can qualify even if they took PPP loans and had no revenue decrease. When President Biden came into office, he made several changes to the Cares Act legislation making it much easier for all businesses to qualify. I have partnered with Bottom Line Concepts, the world’s leading independent consulting firm filing for ERC. Bottom Line makes the process of filing for ERC, extremely simple and efficient. A business can receive up to $26,000 per employee ($10,000 is the average). If you would like to learn more about how Bottom Line can help your business, please click the link below, press “Get Qualified” and sign up for a free 15 minute call with an expert advisor. Bottom Line works on a contingency basis and there is no cost until you are fully funded by the IRS.​

*Include your personal marketing link

*Include the ERC Overview & the List of Covid Operational Qualifiers

Two Specific Ways to Qualify for ERC

1. Decline in gross revenue. Each quarter is independently measured against the comparable quarter in 2019

50% decline in 2020 (Q2,3,4)

20% decline in 2021 (Q1,2,3)

2. Full or partial suspension of operations

The second way to qualify is if your business experienced a full or partial suspension of operations. A partial suspension is defined by having to make modifications to the operations of a business due to government orders resulting in a “nominal effect” to the business operations.

“Nominal Effect” – IRS Notice 2021-20 – Page 39 “The mere fact that an employer must make a modification to business operations due to a governmental order does not result in a partial suspension unless the modification has more than a nominal effect on the employer’s business operations. Whether a modification required by a governmental order has more than a nominal effect on the business operations is based on the facts and circumstances. A governmental order that results in a reduction in an employer’s ability to provide goods or services in the normal course of the employer’s business of not less than 10 percent will be deemed to have more than a nominal effect on the employer’s business operations.”

The considerations for determining the nominal effect are that you would be able to say yes to at least one of the bulleted items in the list of Covid Operational Qaulifiers. These are examples of disruptions, or modifications you may have made to the operation as a result of government orders.

On October 19th of 2022, the IRS issued a warning regarding the ERC program as it relates to some 3rd party processing firms. You can find a link to the warning on the IRS site here.  

The IRS warning suggests some 3rd party processing firms charge large up-front fees or contingent fees without proper calculation methods or understanding of the ERC program which may result in repayments, penalties, and accrued interest, adversely impacting their business. 

At BLC, we are aware of the IRS warning and are supportive of its mission to inform employers to do their diligence when selecting a 3rd party to assist with their ERC. 

We have served clients across many industries and represent ~30% of the top 100 accounting firms, ~30% of the top 100 law firms and 20% for the Fortune 1000.  I’d like to personally confirm our commitment to you and your organization. 

Through our 15 years’ experience in recovering money from the federal and states governments, we strive to provide you with the best ERC service and experience in the industry.  We pride ourselves on delivering cost savings and value to our clients.  In all our years’ operating, we have never charged any upfront fees. 

As part of our service, we commit to provide you with: 

A comprehensive ERC Report that is an audit ready file based upon IRS audit guidance. 

Guidance to help you understand the ERC Program and clearly explain both Your eligibility and how Your eligible wages are calculated, especially what ineligible wages must be excluded from your ERC claims.  

Proven by our track record, we are confident in our approach, calculation method and quality process. Should you have any question on this matter please reach out to me directly. 

We appreciate your business and trust in our ability! 

On October 19, 2022, the IRS issued a warning on ERC claims.  They renewed and expanded that warning yesterday on March 7, 2023. We at Bottom Line are very pleased that the IRS issued these warnings, as there are many fly-by-night, so-called ERC “experts” or “consultants” that are misrepresenting their experiences and the parameters of the ERC program to employers. As you know, Bottom Line is no newcomer, with over 14 years in the cost-savings consulting space. From the very beginning of the CARES Act we have made our clients aware of the ERC opportunity and assisted qualifying clients, many of which are part of the top 100 accounting and law firms and Fortune 1000, in navigating the ERC claims’ submissions process.

Many potential clients will be—and should be—aware of the IRS warnings. The IRS warns employers to carefully review the ERC guidelines before submitting a claim.  There are several dubious promoters pushing ineligible employers to file while not informing employers that wage deductions claimed on their tax returns must be reduced by the amount of their ERC refund through amending their returns. The following addresses each of the IRS warnings and how these warnings relate to the services that Bottom Line provides its clients:

Bottom Line provides IRS qualification information to every client. For instance, we highlight that clients may qualify not only based upon a significant decline in gross receipts; they may also qualify if a client’s operations were fully or partially suspended in the event that gross receipts were not impacted.

At Bottom Line, we routinely assist clients with 5 or more W-2 employees navigate the ERC process, including performing calculations to determine the amount that each client qualifies for and assisting in the preparation of IRS filings.

For clients who have already filed their income tax returns for the applicable year receiving ERC, at Bottom Line, we highlight the need for them to amend their returns to correct any overstated wage deductions.

At Bottom Line we are very proud of the services we provide to our clients, which exceed the highest industry standards. We continue to monitor and update our team and clients with respect to any changes to IRS guidance as it relates to the ERC program.

As always, we thank you for your efforts on behalf of Bottom Line.

On March 20, 2023, the IRS published its annual “Dirty Dozen” list of a variety of scams that taxpayers may encounter, which includes aggressive ERC promoters making offers too good to be true. The IRS also cautioned taxpayers to be cognizant of advertisements which exist solely to collect the taxpayer’s personally identifiable information in exchange for false promises, warning that these scammers then use the information to conduct identity theft.

We at Bottom Line are very pleased that the IRS continues to issue these warnings to unsuspecting taxpayers, as there are several dubious promoters pushing ineligible employers to file while not informing employers of various aspects of the ERC program impacting their taxes. These fly-by-night, so-called “experts” that misrepresent the ERC program inevitably taint legitimate service providers and consultants who want to help qualified taxpayers to obtain legitimate employee retention credits, as the CARES Act intended. Reiterating several earlier alerts, the IRS highlights schemes from promoters that are based on inaccurate information related to eligibility for and computation of the credits. 

As you are likely aware, Bottom Line is no newcomer, with over 14 years in the cost-savings consulting space. From the very beginning of the CARES Act we have made our clients aware of the ERC opportunity and assisted qualifying clients, many of which are part of the top 100 accounting and law firms and Fortune 1000, in navigating the ERC claims’ submissions process. We work closely with several former IRS tax attorneys to navigate the most up-to-date IRS guidance. The following addresses the IRS’s warnings and how these warnings relate to the services that Bottom Line provides its clients:

Bottom Line provides IRS qualification information to every client. For instance, we highlight that clients may qualify not only based upon a significant decline in gross receipts; they may also qualify if a client’s operations were fully or partially suspended as a result of government orders.

At Bottom Line, we routinely assist clients with 5 or more W-2 employees navigate the ERC process, including performing calculations to determine the amount that each client qualifies for and assisting in the preparation of IRS filings.

Obviously, when clients who have already filed their income tax returns for the applicable year receive ERC credits, we also highlight that such clients will need to amend their returns to correct any overstated wage deduction.

For clients who have already filed their income tax returns for the applicable year receiving ERC, at Bottom Line, we strive to make it clear, and highlight the need for them to amend their returns to correct any overstated wage deductions.

At Bottom Line, we continually monitor and update our team and clients with respect to any changes to IRS guidance as it relates to the ERC program. We are very proud of the services we provide to our clients and, as always, we are thankful for the trust you have placed in us to assist with your ERC needs. 

This is sent as part of BLC’s continued updates of IRS alerts related to bad actors and abuses of the ERC program. In the most recent alert on May 25th, the agency appropriately reiterated its warning to businesses and tax-exempt groups regarding ERC scams that use deceptive marketing practices to encourage the filing of fraudulent claims—ERC claims that the targeted business does not qualify for. 

The ERC is a critical program supporting American small business and aligned to the mission BLC has had for over 15 years: to help American business realize savings in a transparent, ethical, quality, and compliant manner. As a cost reduction consulting company that includes client assistance with the ERC program, BLC applauds the IRS’s proactive efforts to highlight risks for small businesses and warning the public of bad actors. 

As we explain to clients, the IRS qualification and eligibility requirements are complex and require expertise, experience, and time. Should a client or RP ask about this IRS warning, please refer to the points below so we can help educate them while also ensuring that our market message remains consistent:

  • We are aware of the IRS warning and are supportive of its mission to inform companies of the signs of potential bad actors.
  • We agree that the application process is complex and requires expertise and experience to calculate the potential refund.
  • The BLC screening process takes time and is underpinned by a detailed qualification analysis method to ensure compliance with the IRS guidelines.
  • BLC was founded in 2009, and for all our years operating, we have never charged any upfront fees.
  • We ensure our clients understand the ERC program and clearly explain both a Client’s eligibility and how their eligible wages are calculated—especially what ineligible wages must be excluded from their ERC claims.
  • Roughly 40% of business referred for possible ERC filing were not accepted by Bottom Line for ERC filing assistance as our screening process determined that these businesses did not meet the ERC criteria as set forth in the Cares Act.

At Bottom Line, we are steadfast in our mission to educate American businesses on the ERC program and help them realize savings in a transparent, ethical, quality, and compliant manner… helping them reinvest in themselves and their future.

Frequently Asked Questions

An eligible employer claiming a refundable credit for any quarter in 2020 must file its 941x forms by April 15, 2024. An eligible employer claiming a refundable credit for any quarter in 2021 must file its 941x forms by April 15, 2025.

There are two ways to qualify: EITHER a change in your operations OR a revenue decline. You do not need a revenue decline to qualify, in fact many businesses had a revenue increase and still qualified.

ERC is a stimulus program designed to help those businesses that were able to retain their employees during the Covid-19 pandemic. Established by the CARES Act, it is a refundable tax credit – a grant, not a loan – that you can claim for your business. The ERC is available to both small and mid-sized businesses. It is based on qualified wages and healthcare paid to employees.

Here are some impacts to consider that qualify your business for the Employee Retention Credit:

  1. Change in business hours
  2. Partial or full suspension of your operations
  3. Shutdowns of your supply chain or vendors
  4. Reduction in services offered
  5. Reduction in workforce or employee workloads
  6. A disruption in your business (division or department closures)
  7. Inability to visit a client’s job site
  8. Suppliers were unable to make deliveries of critical goods or materials
  9. Additional spacing requirements for employees and customers due to social distancing
  10. Change in job roles/functions
  11. Tasks or work that couldn’t be done from home or while transitioning to remote work conditions
  12. Lack of Travel
  13. Lack of Group Meetings

There are two ways to qualify:

  1. FULL OR PARTIAL SUSPENSION OF BUSINESS OPERATIONS A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel, or restrictions of group meetings.
  2. GROSS RECEIPTS REDUCTION Gross receipt reduction criteria are different for 2020 and 2021 but are measured against the current quarter as compared to 2019 pre-COVID amounts.

Yes. Under the Consolidated Appropriations Act, businesses can now qualify for the ERC even if they already received a PPP loan. Note, though, that the ERC will only apply to wages not used for the PPP.

We can’t use wages covered by PPP loans and apply them to ERC. There is a “no double-dipping” rule governing the interplay of an employer’s forgiven PPP loan and its eligibility for ERC.

Yes, for example, if a company’s ERC refund was $100 and BLC commission was $30 then the company would lose taxable expense deductions for the net $70 and the net effect would be an increase to its taxable income.

The refund is a deduction in the payroll expense for the period that the credit is for. The interest that the IRS pays on the credit is considered taxable income in the period that the payment is received.

As with any fillings that are done with the IRS there is always a chance that you can get audited, however, with the volume that the IRS is processing and their short staff levels it is highly unlikely, the audit rate for employment-related tax returns for the last year that the data was available for was under 3 per 10,000 returns. In the unlikely event that you do get audited, while we can’t represent you we will assist by providing all of the supporting documentation to back up the work that we did.

If you have a contact for Bottom Line to bring in as a Referral Partner please fill out Schedule B so we can ensure they are listed as your referral in our system.

If you have a referral you would like to introduce to Bottom Line, prior to making the introduction, please fill out this Schedule A.

The program began on March 13th, 2020 and ends on September 30, 2021, for eligible employers.

An eligible employer claiming a refundable credit for any quarter in 2020 must file its 941x forms by April 15, 2024.

An eligible employer claiming a refundable credit for any quarter in 2021 must files its 941x forms by April 15, 2025.

We have clients who received refunds only, and others that, in addition to refunds, also qualified to continue receiving ERC in every payroll they process through December 31, 2021, at about 30% of their payroll cost.

We have clients who have received refunds from $100,000 to $6 million.

Your business qualifies for the ERC, if it falls under one of the following:

  • A government authority required partial or full shutdown of your business during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
  • Gross receipt reduction criteria is different for 2020 and 2021, but is measured against the current quarter as compared to 2019 pre-COVID amounts.

Yes. To qualify, your business must meet either one of the following criteria:

  • Experienced a decline in gross receipts by 20%, or
  • Had to change business operations due to government orders

Many items are considered as changes in business operations, including shifts in job roles and the purchase of extra protective equipment. The ERC, in this case, also applies only for Q3 and Q4 of 2021. Businesses can qualify, regardless of the number of full-time employees.