Demystifying the ERC: Five Common Yet Unfounded Fears

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When contemplating submitting an application for Employee Retention Credit (ERC), many business owners experience some measure of trepidation. If you let unfounded fears prevent you from applying, you risk missing out on significant financial support you could have received.

During the difficult times brought on by the epidemic, the ERC was conceived to provide businesses with a financial buffer. However, many people have been dissuaded from taking advantage of this provision due to numerous concerns. Those include but are not limited to the supposed complexity, the lack of clarity surrounding its qualifying requirements, the amount of time it would take, and the possibility of being duped. It is necessary to approach such financial relief without concern because it can play an essential role in the resiliency and expansion of your company.

Common Yet Unfounded Fears

Fear 1: “The Process is Overwhelmingly Complex!” It is natural to find tax credits and government initiatives daunting. However, do not let the intricacy deter you. Despite seeming complex, the ERC can be navigated smoothly with the proper guidance and support.

Fear 2: “I Do Not Qualify!” is the second concern. Because of misconceptions regarding the original qualifying criteria, several business owners have been told by their CPAs and other specialists that they are ineligible for the ERC. You may still be eligible for this beneficial credit even if you have received additional pandemic-related assistance. Expense To Profit and our team will thoroughly examine your circumstances and determine your eligibility without making assumptions.

Fear 3: “It is Excessively Time-Consuming!” is the typical third concern. Running a business already takes a significant amount of time, and the paperwork for the ERC application may sound daunting. Nonetheless, the potential financial value of the ERC much outweighs this minor inconvenience. With professional assistance from our team, you can speed up the application process and reduce the time commitment.

Fear 4: “I Will Not Be Able to Repay It!” is a fourth concern we hear from clients. It is vital to comprehend that the ERC is not a loan but a refundable tax credit. Unlike a loan, you are not obligated to repay the credit, provided you satisfy the eligibility requirements and conform to the program’s guidelines.

Fear 5: “It is Fraud!” A few business owners remain skeptical of the ERC’s authenticity. While financial restraint is admirable, the ERC is a genuine government effort introduced in March 2020 to encourage firms to keep their employees throughout the epidemic. Legislative authority and extension ensure the credit’s integrity.


Do not let these apprehensions obstruct your potential financial progress. Instead, engage with Expense To Profit to simplify the complexities, verify your eligibility, and ensure strict compliance with program protocols.

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Marc Freedman

To help you achieve your company's financial growth goals, Marc serves as our Chief Cost Advisor, providing advice to client management teams. He is highly regarded as an expert in his field, and he frequently collaborates with and contributes to other spend consultants to develop and implement cutting-edge strategies for their respective clients.

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