ERC and PPP

How Ceterus can help now and moving forward.

The original CARES Act forced small business owners to select either a loan under the Paycheck Protection Program (PPP) or an Employee Retention Tax Credit (ERC).  That limitation was changed at the start of 2021 that essentially offered 2020 ERC retroactively to PPP borrowers and extended ERC into 2021.

 

IRS guidance about the ERC and the influence of the PPP on the ERC program is complex in application.  What is clear is that a full ERC analysis should not be completed without a full PPP forgiveness assessment.  This is not a small effort, for many entrepreneurs the relief may be substantial so the ROI will be worthwhile.  It is key to evaluate each service provider to understand fully the nature of the service they are providing and whether they take a comprehensive approach to maximize ERC credits and PPP forgiveness.  This is not a time to leave money on the table. 

 

Ceterus has prepared the offers outlined below after reviewing all the guidance and the regulatory framework related to these programs  In our view, where possible, these activities should be conducted in parallel.

 

See Employee Retention Credit—Let’s Regroup for our latest overview of the ERC program including qualification criteria, credit amounts, and more.

 

If you would like to learn more, please leave your name and contact information below and a member of our team will follow up.  We expect a high level of interest in these offers and will be working to serve customers primarily on a first-come, first-served basis with PPP First Draw Forgiveness as a top priority given payments will be required soon.

1. PPP Forgiveness with ERC Claims

  • Ceterus will work with you to understand your PPP loans (first and/or second draw) and provide data to help support your forgiveness application and ERC claim(s) for the relevant period.  Our objective will be to optimize PPP forgiveness in combination with the ERC.
     

  • Ceterus will request various information and documentation from you.  Once you provide that information, Ceterus will schedule a call to review circumstances, determine whether additional information is needed, and discuss and clarify the next steps.
     

  • Following submission of the background information, Ceterus will establish an approach to PPP forgiveness and perform an analysis of ERC recapture.
     

  • Ceterus’ deliverables will be:
     

    • For PPP: summarized information required to submit the forgiveness application(s) with your lender
       

    • For ERC: summarized information to submit your claim(s) and underlying figures for IRS 941 amendment (and similar state form amendments) to share with your payroll service provider.
       

    • For both PPP and ERC, Ceterus will:
       

      • be available to assist you with the application processes and available for inquiries you receive from your lender or the IRS
         

      • provide a recommendation for documentation retention to substantiate your applications.
         

    • Ceterus will not prepare either the PPP forgiveness application with your lender or the amended revised IRS 941 or state forms for ERC recaptur

  • Limitations:

    • Ceterus can not guarantee whether you will qualify for PPP forgiveness or ERC or, where eligible, the potential amount of PPP forgiveness and/or ERC credits.
       

    • Ceterus can not guarantee whether you will qualify for PPP forgiveness or  ERC or, where eligible, the potential amount of PPP forgiveness and/or ERC credits.
       

    • Ceterus will use reasonable efforts to interpret and apply existing laws and regulations to assist customers to determine an approach for Payroll Protection Program forgiveness and Employee Retention Tax Credits calculations.  In practice, application of those laws and regulations and lender practices can be intensely complex.  Ceterus will attempt to optimize outcomes for the customer but can not conclusively guarantee maximum outcomes.
       

    • Qualified employers have 5 years to submit a claim for ERC credits. Ceterus will work with you as you are able to provide information but also as we serve customers generally on day-to-day, month over month service.

2. PPP Forgiveness Only

  • If you have already applied for ERC or have no interest in the ERC program, Ceterus can assist you with assessing your PPP loan(s), assessing forgiveness eligibility, and gathering information for your PPP forgiveness application(s).
     

  • Our process and limitations will be consistent with the above.

3. ERC Only

  • If you do not have PPP loans or have already applied for PPP forgiveness, Ceterus can assist you with ERC only.
     

  • Ceterus will assess your ERC eligibility for 2020 and/or 2021, taking into consideration your PPP forgiveness application (if relevant), and determine an approach to your ERC claim.
     

  • Again, our process and limitations will be consistent with the notes above.

What Our Customers Are Saying

“I count on Ceterus to keep my books and file my taxes. Ceterus also helped me to navigate the challenges of maximizing the employee retention credit.  They helped me identify more than I thought would be available to me."

– P. Narra,

European Wax Franchise Owner

If you are interested in learning more, please submit the form below and we will reach out as additional details on our offerings are available.