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 Payroll Protection Program (PPP) or an Employee Retention Tax Credit (ERC). That limitation was changed at the start of 2021 under more recent stimulus legislation that essentially offered 2020 ERC retroactively to PPP borrowers.
 

The IRS has now issued detailed guidance about the ERC and the influence of the PPP on the ERC program. Those guidelines are complex in application. What is clear is that a full ERC analysis should not be completed without a full PPP forgiveness assessment. While this is not a small effort, for many entrepreneurs the relief may be substantial so the ROI will be worthwhile.
 

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.
 

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.
 

We appreciate the extraordinary circumstances small businesses are working under and the need for clarity on both the outcome of the PPP forgiveness process and the potential cash flow implications of the ERC. In terms of delivery timeframes, we currently anticipate up to 4 weeks from receipt of all input from you to deliver a final package of deliverables. Be aware that there is a congressionally mandated 5-year window to re-capture ERC and that ERC funding is not limited in total federal cash outlay (which is true with the PPP).

1. PPP First Draw Forgiveness with 2020 ERC Recapture

  • Ceterus will work with you to understand your PPP first draw loan and provide data to help support your forgiveness application and 2020 ERC claim.  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 2020 ERC recapture.
     

  • Ceterus’ deliverables will be:
     

    • For PPP: summarized information required to submit the forgiveness application with your lender.
       

    • For ERC: summarized information to submit your claim 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 recapture.
       

  • 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 will use reasonable efforts to interpret and apply existing law and regulation to assist customers to determine an approach for Payroll Protection Program forgiveness and Employee Retention Tax Credits calculations.  In practice, the 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.
       

    • Standard pricing applies for PPP loans less than $150,000.
       

    • Under recently passed stimulus legislation, qualified employers have 5 years to submit a claim for 2020 ERC credits. Ceterus will work with you as you are able to provide information but also as we serve customers generally on the day-to-day, month over month service.  Given the uniqueness of these circumstances, it is impossible for Ceterus to predict customer demand for these services and, therefore, difficult to commit to a timeline to completion.  We will do our best to keep you informed and are grateful for your patience and understanding.

2. PPP First Draw Forgiveness Application Only

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

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

3. 2020 ERC Only

  • If you do not have a PPP first draw loan or have already applied for PPP first draw forgiveness, Ceterus can assist you with 2020 ERC only.
     

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

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

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.

800.571.6119

Solutions

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4900 O’Hear Avenue

Suite 100, PMB 125
North Charleston, SC 29405  

 800.571.6119

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