Bob Hendrickson, IOHT

The Employee Retention Credit (ERC) program was part of the COVID relief bills passed in 2020 to assist business with keeping their workers employed. Businesses had the choice to file a tax amendment for the ERC or apply for the Payroll Protection Program (PPP).

At the time it was an either-or situation: take a PPP or file for an ERC. Because these programs were rolling out at such a rapid rate and procedures on how to apply were a bit hazy at best, most businesses chose going with a PPP.

With the passage of the Relief Act of 2021, businesses then became eligible to claim a PPP in addition to filing for an ERC. Word of this seemed to roll out slowing until this past spring since most accountants were dealing with PPP forgiveness filings along with a host of other accounting challenges.

According to the Small Business Association of Michigan (SBAM) the IRS anticipates over 70% of businesses and non-profits are qualified for the ERC, but only about 15% of eligible businesses have taken advantage of it to date.

The urgency of getting word out now is that businesses are only allowed to file for a retroactive refund three years from the date of the original qualified tax filing. For businesses reaching back to the first quarter of 2020 when the pandemic hit filings are due the first quarter of 2023.

Another reason to get word out is there are a lot of business not aware of this opportunity. In addition, since this is a government-funded program rules could change again or funding exhausted.

The best way to find out if your business or organization qualifies for the ERC is to consult with your tax advisor or CPA. If you do your own taxes and filings there is a quick eligibility check provided by SBAM at www.sbam.org/employee-retention-credit to complete a short online qualification questionnaire.

If qualified, business can complete a second questionnaire to estimate the amount of recovery. SBAM is partnering with ERC Today, an accounting firm that specializes in ERC filings. If you are eligible and decided to file using ERC Today a percentage of your credit is used as the filing fee. In addition, GINCC members are automatically given premium membership with SBAM as part of our Strategic Partnership agreement and received a $250 fee discount for this service. Please note that this refundable tax credit is not exclusive through ERC Today and can by filed by any tax or accounting firm.

To learn more about the GINCC, visit our website at www.gincc.org, give us a call or stop in. Office hours are 9 a.m.-5 p.m. Monday through Friday. We are at times out of office on Chamber business. Please call ahead to confirm a visit, 906-486-1111.

EDITOR’S NOTE: Bob Hendrickson is the executive director of the GINCC. He currently resides in Negaunee with his wife, Laura, and daughter, Sierra. He enjoys mountain biking, skiing, fishing and hunting along with family time.