Selecting the right company for Employee Retention Credit (ERC) assistance is crucial for businesses benefiting from this tax credit. With the complexity of ERC regulations, the expertise of specialized firms becomes invaluable. These top ERC companies provide essential guidance, helping businesses understand and effectively claim their credits.
6 Best ERC Companies and Agencies
Here are six of the best ERC companies, each excelling in specific ERC guidance and support areas.
- ERC Specialists: Best for Comprehensive ERC Guidance
- ERC Today: Best for Updated ERC Information
- Bottomline Concepts: Best for Cost Reduction Consulting
- Omega Accounting Solutions: Best for Expert Tax Credits
- Lendio: Best for Diverse Financial Solutions
- Innovation Refunds: Best for Innovative Refund Strategies
Overview
ERC Specialists is a specialized tax service company focusing exclusively on maximizing the Employee Retention Credit under the CARES Act for U.S. businesses impacted by COVID-19. They bring over 40 years of experience in payroll taxes, positioning themselves to help businesses accurately claim what they are legally owed.
Benefits & Features Included
- Free Analysis Service: They offer a complimentary analysis to determine if a business qualifies for the ERC.
- Four-Step Claim Process: Streamlined and secure process for claiming ERC.
- Expert Team: Comprised of tax professionals and attorneys skilled in optimizing ERC claims.
- Partnership Opportunities: Collaborations with Linqqs.com and 1st Capital for Bridge Loan options.
Qualifying Process
ERC Specialists provide an assessment service that carefully evaluates the eligibility of businesses for the ERC, focusing on factors like revenue decline and operational disruptions due to COVID-19.
Processing Time
The processing time for ERC claims can vary. Generally, it takes ERC Specialists two to three weeks to submit the necessary documentation, followed by a standard IRS processing time extending up to 20 weeks or more.
Pricing
ERC Specialists charge competitive fees ranging from 10% to 15%
of the refund amount. Payment options are flexible, allowing businesses to pay upfront or deduct fees from the refund check.
Customer Support & Reviews
Customer reviews generally rate ERC Specialists positively, highlighting their effectiveness and professionalism. However, some reviews mention longer wait times for phone or email responses. The partnership with Linqqs provides additional support for businesses during the filing process.
Pros
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Competitive fees compared to the industry standar
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Specialized focus on ERC claims
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Positive client feedback for simplifying the ERC claim process
Cons
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Limited to ERC claims, no support for other tax credits
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Longer wait times for customer support
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No advance options for ERC loans
Overview
ERC Today is a dedicated tax service provider specializing in Employee Retention Credit for businesses of all sizes. Known for their efficient processing of ERC claims, they stand out with their extensive experience maximizing ERC refunds for their clients.
Benefits & Features Included
- Free Initial Analysis: ERC Today offers a complimentary analysis to assess eligibility for ERC.
- Expertise in ERC: Specialization in ERC claims ensures focused and informed support.
- Quick Processing: Some claims can be processed in about one to two weeks.
- High Ratings: Impressive ratings across various platforms, reflecting customer satisfaction.
Qualifying Process
ERC Today’s qualification process involves a comprehensive analysis of a business’s eligibility, considering factors like payroll records and financial impact due to COVID-19.
Processing Time
ERC Today is known for quick processing, potentially preparing claims within one to two weeks. However, actual IRS processing times may extend significantly, sometimes up to a year or more, due to current backlogs.
Pricing
Depending on the amount, fees range from 7.5% to 15% of the ERC refund. Higher credits attract lower fees, making their services cost-effective for businesses with larger claims.
Customer Support & Reviews
ERC Today has garnered high customer ratings, averaging 4.9 out of 5 stars. Reviews often highlight their excellent customer support, streamlined application process, and expertise in ERC processing.
Pros
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High-quality customer support and responsiveness
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Efficient and streamlined application process for ERC
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Free initial consultation to assess eligibility
Cons
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Higher fees for smaller refunds
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Processing times can be lengthy due to IRS backlogs
Overview
Bottomline Concepts, founded in 2009 by Josh Fox, is a performance-based cost reduction consulting firm. Specializing in ERC and government aid programs, the firm has successfully assisted clients in recovering over $5 billion in savings. Their approach prioritizes delivering cost savings and value without upfront fees, catering primarily to government aid programs like the ERC.
Benefits & Features Included
Bottomline Concepts offers a unique performance-based model where fees are charged only upon successful savings or refunds. This approach ensures a risk-free partnership for clients. The company’s specialization in ERC enables them to provide dedicated expertise in this area, resulting in substantial client recoveries.
Qualifying Process
The qualifying process involves evaluating businesses for ERC eligibility, focusing on criteria like revenue decline or operation suspensions due to governmental orders. Interestingly, Bottomline Concepts considers businesses that have received PPP loans but still qualify for ERC.
Processing Time
While Bottomline Concepts aims to process ERC claims efficiently, the actual time varies based on individual cases and IRS backlogs, affecting the timeline.
Pricing
The company operates on a contingency model, where the fee is a percentage of the savings achieved. This pricing structure is applied after the successful completion of ERC claims, ensuring no upfront costs for clients.
Customer Support & Reviews
Bottomline Concepts is recognized for its exceptional customer support. Clients can access a team of knowledgeable professionals who offer personalized and responsive assistance. This includes direct communication channels via phone and email, ensuring queries and concerns are promptly addressed. The firm also provides educational resources to help clients understand the intricacies of the Employee Retention Credit and other financial strategies, adding an educational dimension to their support.
Reviews and testimonials for Bottomline Concepts are overwhelmingly positive. Clients often commend the firm for its expertise handling Employee Retention Credit claims and other cost-saving strategies. The significant financial impact of their services, including substantial savings and refunds, is a recurring theme in client feedback.
Pros
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No risk engagement with fees only upon successful claims
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Expertise in ERC and government aid programs
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Significant track record in recovering savings for clients
Cons
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The contingent fee model may lead to higher fees for complex claims
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Large volume of documentation required might be burdensome for some clients
Overview
Omega Accounting Solutions, based in Irvine, California, specializes in various business, financial, and tax services for companies across the United States. Their offerings include assistance with the Employee Retention Tax Credit (ERC) and the Research and Development Tax Credit and fractional CFO services, accounting, business intelligence, analytics, and reporting solutions.
Benefits & Features Included
Omega Accounting Solutions offers a range of services that cater to the diverse needs of businesses:
- Employee Retention Tax Credit Services: They help businesses claim the ERC, a lucrative tax credit retroactively available from the IRS.
- Research & Development Tax Credit Assistance: Assistance in claiming R&D tax credits for eligible businesses.
- Additional Services: These include fractional CFO and accounting services and business analytics and intelligence solutions.
Qualifying Process
To assist businesses in qualifying for the ERC and R&D tax credits, Omega Accounting Solutions thoroughly assesses each business’s eligibility based on specific criteria such as revenue decline or full/partial suspension of operations due to government orders.
Processing Time
Omega Accounting Solutions aims to complete and file ERC refund forms quickly. Due to the IRS backlog, receiving the refund may take at least 20 weeks.
Pricing
Omega Accounting Solutions does not publicly disclose its fees for ERC services. Businesses interested in their services must contact the company directly for pricing information.
Customer Support & Reviews
Omega Accounting Solutions is known for its excellent customer support. They offer various channels for communication, including email, phone, and social media. Clients have generally provided positive feedback, praising their professionalism, responsiveness, and expertise.
Pros
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Specialization in ERC and R&D tax credits
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Additional business and financial services are offered
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Unique ERC bridge loan program for faster funding
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Generally positive client reviews
Cons
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Lack of transparency in pricing
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Some clients report slow processing times
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Occasional complaints about high fees
Overview
Lendio is a renowned loan marketplace offering many financing options to small businesses. With over 75 lenders available, Lendio specializes in rapidly connecting business owners with suitable loans, catering to various needs like equipment purchasing, office location real estate, or company acquisitions. The process involves a straightforward application form, and decisions are typically made on the same business day.
Benefits & Features Included
- Extensive Range of Lenders: Lendio’s network boasts more than 300 lending partners, including top banks and financial institutions.
- Variety of Loan Types: Offers diverse financing options, including short-term loans, business lines of credit, term loans, merchant cash advances, startup loans, equipment financing, and more.
- Business Loan Amounts: Loan amounts range from $5,000 to $2,000,000, catering to businesses with different credit scores.
- Quick Application Process: A 15-minute application process with a soft credit pull that doesn’t impact credit score.
- Dedicated Funding Manager: Personalized assistance from a funding manager for loan options evaluation and guidance.
Qualifying Process
Qualifications for a business loan with Lendio vary, as they match you with lenders based on:
- Personal Credit Score: Requirements differ per lender; for instance, a score of 680 for startup loans, 560 for business lines of credit, and 650 for equipment financing.
- Time in Business: Generally, at least six months in business is required, with some loans, like SBA loans, needing at least two years.
- Annual Revenue: Varies by loan type, with minimums typically between $50,000 to $250,000.
Processing Time
Upon submitting a fully completed application accompanied by all necessary documents, Lendio typically operates efficiently. Applicants can expect to swiftly see updates or potential offers reflected in their portal, usually within 1 to 3 days. This prompt response rate underscores Lendio’s commitment to facilitating a quick and streamlined process for its clients.
Pricing
At the entry level, there’s a Free-Forever plan, which, as the name suggests, is available at no cost and provides access to a limited set of features. Lendio provides Premium Plans based on a subscription model for businesses seeking more comprehensive services. These plans begin at $19.99 and offer an expanded array of features and capabilities beyond what’s available in the free version.
Customer Support & Reviews
Lendio is praised for its exceptional customer support, offering various channels like social media, email, live chat, and phone. Customers often highlight the responsiveness and professionalism of the Lendio team. Reviews generally reflect satisfaction with Lendio’s service, citing ease of application and the range of loan options available.
Pros
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Wide range of lending options
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Quick and simple application process
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Access to numerous reputable lenders
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Variety in loan types and amounts
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Strong customer support with dedicated funding managers
Cons
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Non-transparent pricing structure
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Processing time can vary and may be slow for some loan types
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Requirement for extensive documentation for loan approval
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Lendio’s role is limited to connecting businesses with lenders as a marketplace, not a direct lender
Overview
Innovation Refunds, based in West Des Moines, Iowa, is a well-established firm that assists small to mid-sized businesses file and claim Employee Retention Credits (ERC). The company has built a significant reputation by aiding over 20,000 firms and forming over 150 trusted relationships with banks and financial institutions. Innovation Refunds is known for its secure and streamlined claim process, reinforced by its SOC 2 Type 1 certification by the AICPA.
Benefits & Features Included
- Streamlined ERC Claim Process: Innovation Refunds simplify the ERC filing process, ensuring efficiency and security.
- Experienced Team: A network of CPAs and tax attorneys works on the filings, ensuring accuracy and compliance.
- Integration with Accounting Systems: The company’s system is designed to work with existing payroll and accounting software, facilitating seamless data integration.
- Audit Support: Clients receive audit support as part of the service, adding an extra layer of security.
Qualifying Process
To qualify for Innovation Refunds’ services, businesses must:
- Be small to mid-sized with at least four employees.
- Meet specific criteria for ERC eligibility, including factors like experiencing revenue decline or operational disruptions due to government orders related to the COVID-19 pandemic.
Processing Time
While Innovation Refunds is committed to a rapid and efficient process, the timeline can vary based on individual case complexity and IRS processing times. The initial application and qualification assessment are designed to be quick and user-friendly.
Pricing
Innovation Refunds charges a fee of 25% of the business’s ERC credit. This fee is only due after the business receives its refund, ensuring a no-risk approach for clients. The company offers a free initial analysis to assess eligibility.
Customer Support & Reviews
Innovation Refunds have garnered an impressive 4.8-star rating from users, reflecting high satisfaction. Clients commend the company for its:
- Professionalism and expertise in handling ERC claims.
- Responsive and helpful customer service.
- The convenience of the claims process.
Pros
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Free, no-obligation ERC analysis
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No upfront fees; payment is due only after receiving the ERC refund
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Strong track record with a high number of successful claims
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Dedicated account specialists provide personalized assistance
Cons
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Fees are relatively high at 25% of the ERC credit
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Services are limited to businesses with at least four full-time employees
What Is Employee Retention Credit?
The Employee Retention Credit (ERC) emerged as a pivotal component of the U.S. government’s response to the economic distress caused by the COVID-19 pandemic. This credit, a feature of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, represents a refundable tax credit for employers. Its primary aim is to encourage businesses, particularly those grappling with the financial fallout of the pandemic, to retain their employees on the payroll.
The ERC offers a tangible benefit by allowing businesses to claim a percentage of the wages paid to their employees against their federal payroll taxes. This includes wages paid when their business operations were either fully or partially suspended due to government-mandated COVID-19 restrictions or when they experienced significant declines in gross receipts.
How Does the Employee Retention Tax Credit Work?
The workings of the Employee Retention Tax Credit are straightforward yet profoundly impactful. Qualifying employers can deduct a specified percentage of the wages they pay to their employees, along with specific health insurance costs, from their federal employment tax deposits. If the amount of the credit exceeds the employer’s total payroll tax liability, the excess is refunded to the business.
This process is not just a tax-saving measure but a critical financial aid, injecting liquidity into businesses when needed. The refundable nature of the credit makes it particularly valuable for companies facing reduced income or even potential closure, helping them to stabilize their operations and maintain their workforce during one of the most challenging economic periods in recent history.
What Is ERC Organization
“ERC Organization” refers to entities or firms assisting businesses claim ERC. These organizations typically comprise tax professionals, accountants, or specialized consultancies that offer guidance and support to businesses seeking to explore the complexities of the ERC.
Their role is important in helping businesses understand eligibility, calculate the credit accurately, and ensure compliance with the IRS regulations. These organizations have become particularly relevant due to the intricacies of claiming the ERC, which can be challenging for businesses to handle independently.
How Much Do ERC Companies Cost
The cost structure for ERC (Employee Retention Credit) companies is diverse and largely depends on the nature of their services. Generally, these companies follow one of two primary pricing models. Some opt for a contingent fee arrangement, charging a percentage of the ERC refund they secure for their clients. This percentage usually falls within the range of 15% to 25%. This approach means the company’s fee is directly tied to the claim’s success, aligning their interests with their clients.
On the other hand, tax professionals and CPAs (Certified Public Accountants) may prefer a more traditional billing method, charging either an hourly rate or a flat fee for their services. This model can be more predictable for businesses, as it doesn’t vary with the size of the ERC refund. The choice between these two pricing models depends on a business’s specific needs, preferences, and the complexity of its ERC claim.
Take Note: Businesses should consider the potential return on investment when selecting an ERC company, balancing the cost of services against the expertise and potential financial benefits they offer.
How Do I Find A Reputable ERC Company
Selecting a trustworthy ERC company involves several considerations to ensure you align with a service that meets your business’s needs.
Experienced Team
Prioritize a company with a seasoned team of professionals. Expertise in tax law and specific knowledge of the ERC are essential. A team with deep experience can skillfully manage complex tax scenarios, offering accurate and maximized claim guidance.
Free Qualification Analysis
Opt for a company that provides a no-cost qualification analysis. This service should be free of financial commitment, reflecting the company’s confidence in its eligibility assessment skills and commitment to honest dealings.
Competitive Fees
Examine the company’s fee structure. A reputable ERC firm should have straightforward, reasonable pricing without hidden charges. Favor companies with fee arrangements contingent on your claim’s success, ensuring cost-effectiveness.
Easy Application
The application process should be uncomplicated and user-friendly. A company that simplifies the submission of information demonstrates an understanding of client needs and a focus on efficiency.
Features & Benefits
Assess the specific features and benefits each company offers. Look for services like customized claim strategies, personalized service, or additional tax planning support. These distinguishing features often set apart superior services.
Customer Support
Effective customer support is key. A reliable ERC company will provide attentive support to address questions and concerns quickly through clear communication channels and demonstrate responsiveness.
Reviews
Finally, consider reviews and testimonials from other businesses using their services. These real-world experiences are valuable for gauging a company’s reliability, effectiveness, and overall client satisfaction.
Considering these key aspects, you can confidently choose an ERC company that fulfils your requirements and enhances your experience with their services.
What To Avoid When Choosing ERC Companies
Carefully choosing an ERC company is important, and avoiding certain pitfalls is essential for ensuring a satisfactory partnership.
Hidden Fees
One of the first things to be cautious of is hidden fees. A reputable ERC company should have transparent pricing, stating their fees upfront without additional, unexpected costs. This transparency is vital as it ensures you’re not surprised by extra charges later in the process, which can significantly affect the overall cost-effectiveness of the service. Companies like Lendio are often recommended for their competitive rates without hidden fees.
Suspicious Website
The legitimacy of a company’s website is another important factor. A secure and professional website is a good indicator of a company’s credibility. Be wary of websites that lack essential information, appear poorly designed, or have unclear contact details. These can be signs of a less reputable service. Always ensure you’re dealing with a legitimate company by checking for signs of security and authenticity on their website.
Poor Reviews
Poor reviews can significantly indicate the quality of service an ERC company provides. While every company may have some negative feedback, a pattern of poor reviews should be taken seriously. They can reveal issues with customer service, effectiveness, or overall satisfaction. Remember that negative reviews often carry more weight than positive ones, as they can reflect genuine customer experiences more accurately.
Inflexible Service Options
Lastly, be cautious of companies with inflexible service options. The best ERC companies offer tailored solutions that fit the unique needs of your business. A one-size-fits-all approach may need to be revised to address your specific requirements or maximize your ERC claim. Service flexibility reflects a company’s ability to handle diverse client needs and adapt to various business scenarios.
Frequently Asked Questions
Is the ERC an Actual Refund?
Yes, the ERC is an actual refund. It’s a refundable tax credit that eligible employers can claim. The excess amount is refunded to the business if the credit exceeds the employer’s payroll tax liability.
When Should I Expect My ERC Refund?
The timeline for receiving an ERC refund can vary. Generally, after filing the necessary forms, businesses might expect to receive their ERC refund within several months. However, exact timing can depend on various factors, including the IRS’s processing times and the specific details of each claim.
What Happens if I Didn’t Get My ERC Refund?
If you still need to receive your ERC refund, it’s important first to check the status of your claim with the IRS. Delays can occur for various reasons, including processing backlogs or issues with your claim. The IRS will usually contact you for clarification or additional information if there are discrepancies or issues.
Does ERC Get Audited?
Yes, ERC claims can be audited by the IRS. The IRS has the authority to audit ERC claims, typically within three years from the date the tax return was filed or the due date of the return, whichever is later.
How Long Is the Wait for ERC Credit?
The waiting period for receiving the ERC refund has seen significant extensions:
- Extended Processing Times: Initially, processing times were around 90 days, but they have been extended to 180 days or more due to the increased volume and complexity of claims.
- Further Delays Expected: Due to the IRS’s moratorium on processing new ERC claims and a backlog of existing claims, businesses may experience longer wait times. Some employers might have to wait up to a year for ERC refunds.
Related
Best ERC Companies Recap
Choosing the right ERC company is more than just a business decision; it’s about finding a partner who understands and supports your journey through these challenging times. When you consider companies like ERC Specialists, ERC Today, Bottomline Concepts, Omega Accounting Solutions, Lendio, and Innovation Refunds, you’re looking at teams that have stood by businesses like yours, helping them tackle the complexities of the Employee Retention Credit.
This choice isn’t just about processing claims efficiently; it’s about feeling confident and supported in a time when every bit of assistance counts. It’s about partnering with a team that resonates with your business ethos, ensuring that your efforts during the pandemic are recognized and rewarded in the best way possible.
Published : January 23,2024
Published : January 23,2024