10 Myths About ERC Tax Credits

erc tax creditsEvery time I talk to a business owner about the ERC, I find another myth that prevents him or her from pursuing the ERC tax credits that are owed to the business by the IRS. Discovering the truth about the Employee Retention Credit program is more difficult because of the same old problem.

Scammers flock toward any source of money. We all know that, but we can help each other by referring those people we know to reputable places for ERC claims.



erc tax credits

How many of these myths do you hold to be absolute truths about ERC?

erc tax credits

MYTH 1 — My business has TOO FEW EMPLOYEES so we do not qualify for the ERC tax credits.

The radio commercials are misleading about the size of company required to claim the ERC tax credits. When the number of employees is “at least 5,” that just tells you that the advertiser wants more money from every claim.

As long as the business owner is paying full-time W-2 employees beyond himself and his immediate family, the IRS could owe you under the Employee Retention Credit program.

If you have fewer than 5 full-time W-2 employees – – – let’s talk – and get you started on your ERC claim!

erc tax credits


MYTH 2 — My business will be audited by the IRS if I file an ERC Claim!

Some accountants have told their clients that the IRS will conduct a full audit of the business if the ERC claim is filed. Now, why would an accountant raise this concern? We all know that most accountants are forthright and care about every client.

Should the client be concerned if an accountant fears an audit of the books? One wonders.


erc tax credits


MYTH 3 — Only my accountant can calculate the ERC claim.

Many business owners immediately contact the accountant and ask about ERC. The ERC legislation contains 200 pages of intricate language detailing the calculations required to maximize the amount to collect from the IRS.

If your accountant does not manage your payroll,
why would you contact your accountant about ERC?

Our payroll specialists have spent months mastering the finer points of the number of credits that can be claimed in each case. Accountants will spend countless hours attempting to create a method of claiming your Employee Retention Credit instead of focusing on reducing your tax burden this year.

Allow our Payroll Specialists to conduct your calculation and file the appropriate paperwork with the IRS.

erc tax credits

MYTH 4 — Every ERC place demands 30% of my ERC claim as a fee.

erc tax creditsNot true at all! We need to discuss your ERC claim and the associated fee, which is nowhere close to 30 percent. I won’t assume to understand why anyone would agree to lose so much money.

Our payroll specialists have the tools that provide consistent ERC calculations in a reasonable time. Processing so many claims allows us to request fees that are fair and appropriate. Every client will find the process easier than you can imagine.


MYTH 5 – – – The number of hours required for me to gather the information is just not worth it!

When you consider that each of your full-time employees could yield $26,000 in ERC tax credits, why would you not spend some time to gather your documents? Even if you want to engage the assistance of your bookkeeper, the outcome could change your future.

Employee Retention Credit

This could be the most important activity for your priority list this week. The only way for you to find out the size of your ERC tax credit claim is to contact me today! When your records are in order, you can gather the information rather quickly.

If your records are not in order, you will want to spend some time to get them into order before tax season. Your accountant will thank you for being prepared when income tax season starts.

There is no reason to dread the preparation tasks required to file your ERC claim.


MYTH 6 – – – Non-profit organizations, like churches and ministries, are not qualified for the ERC tax credits.

erc tax creditsNothing could be further from the truth. Any organization that has paid payroll tax for full-time W-2 employees could qualify for the Employee Retention Credit program.

Most churches were forced to close entirely during much of 2020 and 2021. The ERC program includes compensation for quarters when the operation was restricted from full function. Entire facilities sat empty instead of patrons being allowed to gather in freedom of worship.

All non-profit organizations should take the time to inquire about the ERC program. Claiming the ERC tax credits is not difficult and should not be limited to for-profit businesses.

Contact me today and let’s get started on your ERC claim.

erc tax credits

MYTH 7 – – – My company accepted PPP loans so we do not qualify for the ERC program.

While the initial draft of the ERC law disqualified those who accepted PPP loans, Congress changed this portion of the legislation to broaden the qualifying criteria to include all businesses that took out PPP loans, whether they have been forgiven or not.

Please, do not blame your accountant if that person told you that your PPP loans disqualified you. Congress clouded the situation and not everyone received the updates.


employee tax credit


Even if you took out PPP loans, you can still claim the ERC tax credits back from the IRS.

Don’t wait another day to contact me. We can take a few minutes and walk through the qualification questionnaire.

erc tax credits

MYTH 8 – – – My business income was not substantially lower in 2020 and 2021, so we do not qualify for the ERC tax credits.

Lost income is only one factor in calculating the number of ERC tax credits available to your business. The Employee Retention Credit program is funded by payroll taxes and not income taxes. Many other financial impacts are considered when evaluating the pandemics effect on your business.

Possible Qualifying Situations:

  • Social distancing requirements reduced capacity.
  • Reduction of hours of operation reduced your income.
  • Distribution delays or suspensions affected your sales and services.
  • Supply chain disruptions caused your business to not operate.
  • Suspended onsite work or client meetings reduced your sales revenue.


Even businesses that have made more money during 2020 and 2021 can qualify for ERC tax credits because of these government restrictions.

Contact me today!

MYTH 9 – – – My business was considered ‘essential’ so there is no way for us to collect from the ERC program.

Businesses in every industry are qualifying for the Employee Tax Credit program. Paying employees that didn’t work was an important factor for essential businesses. Even though work was available, there were many times that essential businesses were short-handed because of quarantine requirements.

erc tax credits

Instead of guessing about your eligibility, you and I could complete the qualification questionnaire and find out for certain.

Please, don’t wait any longer.

erc tax credits


MYTH 10 — My business was never actually CLOSED completely, so we do not qualify for ERC money.

Although churches and non-profits were asked to close entirely, most businesses operated at reduced capacity. Every possible impact is entered into the qualifying questionnaire to remove all doubt for those who do qualify for ERC.

Closures were not required for your business to sustain losses from other forces. Your business might have grown substantially in 2020 and 2021 without the government restrictions imposed.

erc tax credits


Instead of listening to myths and misinformation, you and I can fill out the qualifying questionnaire today.  Please, don’t wait any longer.  Reach and get started, now!


erc tax credits

“We must not be hampered by yesterday’s myths in concentrating on today’s needs.”

~ Harold S. Geneen