ERC Analysis Amount Lower Than Estimate

There are a few reasons why a business may have actually qualified for less than what was initially estimated. Our analysis process and calculation is limited information, only provided once the contract is signed.  There are some general answers that can provide clarity and relief to business owners in these cases. Generally, when the estimate is done, it is estimating an *UP TO amount. The estimate may not take into consideration any PPP loans which can significantly affect the ERC amount. Another thing to consider is the fact that when the business enters their average employees for each year, they may have hired some later in the year, or some have left later in the year, so their full wages for the year were calculated in our estimate but not our analysis. Another thing to consider is the amount they pay their employees. The *UP TO amount that the questionnaire covers is set up to quickly estimate how much they would get for each employee, during the quarters they qualify, if they were paying their employees enough to qualify for the full amount of ERC. ERC is a calculated portion of what they have already paid their employees. That being said, the credit is analyzed on actual wages paid.

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