Employee Retention Tax Credit for Texas Medium & Small Businesses
ERC is one of the stimulus programs created by Congress with the 2020 CARES Act. The Employee Retention Credit (ERC) rewards your businesses for keeping employees on the payroll while complying with government mandates regarding capacity restrictions, cleaning, and other limitations. If you kept your business open during 2020 or 2021, you can receive ERC money.
A Texas business can receive $5,000 per employee for 2020 and up to $7,000 per employee for each of the first three quarters in 2021. In total, you can get $26,000 max PER EMPLOYEE as a reward. What’s more, 99% of businesses in Texas will qualify.
We work with business clients in Austin, Dallas, San Antonio, and Dallas to qualify them for ERC tax credits. Let us help you, too.
Can Businesses Claim Both ERC and PPP?
Yes! You don’t have to choose between them. Congress eventually opened up the ERC program to the businesses which received PPP.
Your business can qualify for employee retention credit in Texas even if you received PPP1 or PPP2. Just contact Sunrise Business Solutions today and we guarantee you legally qualify in less than 60 seconds. We proudly serve all businesses in Texas and Nationwide.
How long is the wait to receive ERC in Texas?
Not long at all. Our ERC Experts guarantee we will complete your application within 5 business days. You won’t need to wait months to see if you qualify. We can quickly help you qualify based on payroll information and a few questions.
Once we download your payroll information, we can complete the amended returns and file them for you. The IRS is processing returns on a first come first served basis and will take about 16 weeks to process and pay you. Once you get paid - We will mail your check to you right away, unlike other competitors who choose to deposit payments and send to you later!
Can my business claim ERC in Texas?
Yes! We have helped qualify businesses in one of three ways:
Your gross quarterly receipts saw a significant decline—50% or more in 2020; 20% or more in 2021.
OR
Your business was fully shut down by a government COVID mandate.
OR
Your business suffered a partial suspension of business due to a COVID mandate that was more than nominal.
What counts as a partial suspension of a Texas business?
A partial suspension can take many forms, including:
- Briefly stopping some operations throughout your day to clean or sanitize to combat COVID
- Inability to meet with clients or vendors in person
- Cutting business hours (even a little)
- Offering fewer products or services
- Socially distancing clients or customers
- Performing temperature checks
- Temporarily or permanently shutting a business unit or department
- Suffering a supply chain disruption
We have helped countless Harris County and Tarrant County businesses qualify for ERC for a partial suspension of operations due to a government mandate.
Can essential businesses receive ERC if we weren’t subject to COVID orders?
Yes! Odds are you suffered at least a partial shutdown of your business due to government orders which indirectly affected you.
Ask yourself:
- Did you have to reduce services or goods?
- Did you need to stop performing certain work as employees transitioned to remote working?
- Did you struggle to source materials or services from suppliers impacted by COVID?
- Have you reassigned employees or reduced their hours?
- Did you have to suspend operations even temporarily to clean or implement safety protocols?
If you answered YES to any of these questions, your business suffered a partial suspension of business operations. You qualify for ERC in Texas.
Can’t my CPA or Payroll company help me?
They might not even know about ERC! Many payroll companies don’t know about tax refunds, which is what ERC Money is. And CPAs are great on the income tax side of things, but they rarely handle payroll so they aren’t familiar with ERC.
How Texas businesses file for ERC: Contact SUNRISE Business Solutions for help. We know all the government orders related to COVID and will maximize the amount of tax refund you receive for your business.
In fact, many CPAs and payroll companies are referring their clients to us for help with ERC!
Do I have to pay back the ERC refund?
No! This isn’t a PPP-style loan. It’s money you get back as a reward for keeping employees on payroll. You never have to pay it back.
What can I spend the ERC refund on?
Choose whatever you want. Unlike PPP, which was limited to certain qualified business expenses, ERC is your money. You can plow it back into your business or spend it on yourself. You get it—FOR FREE!
How much do you charge for your services?
At SUNRISE, you never have to pay an upfront fee or charge. Instead, we only charge based on a percentage of any ERC refund we recover for you. It’s that simple. We’ll be sure to provide a fee calculation for free when we provide an analysis of whether you qualify for ERC.
Sunrise Business Solutions has a reputation for recovering more ERC Money than our competitors. This makes our services practically free of charge.
What are the steps for claiming ERC for Texas businesses?
It’s simple. Contact us today and we’ll download your payroll information and analyze whether you qualify for ERC (99% of businesses do!)
If eligible, we file an amended quarterly employment return on Form 941x. You report total qualified wages. Sunrise submits all of this for you, and you keep copies for your own records. The IRS will review your information and then cut a check for ERC.
Can I apply for ERC if my business receipts INCREASED during COVID?
Yes! Reduction in receipts is NOT a requirement. It is only one way to qualify for ERC.
The other ways are a partial or total suspension of business operations. There is no requirement that you have a reduction in gross receipts if you suffered a total/partial suspension.
Sunrise Business Solutions has helped many Texas businesses which suffered even a partial shutdown, regardless of whether their business income increased.
- Capacity Restrictions: Impacted all sorts of businesses, including restaurants, bars, spas, gyms, fitness centers, hotels, convention centers.
- Social Distancing Requirements: Daycares had to keep children apart, restaurants increased the distance between tables, etc.
- Cleaning and Sanitation: Doctors, dentists, spas, gyms all shut down to clean during the day.
- Limitations on Travel or Gathering: Businesses of all sorts were unable to meet face-to-face or attend trade shows, conferences, or other events. Transportation companies that catered to tourists suffered a reduction in business due to stay-home orders.
- Supply Chain Problems: Construction companies, manufacturers, medical offices, and others all impacted by difficulty or inability to obtain necessary products or services.
- Government Office Closures: Lawyers unable to hold in-court hearings or hold trials while government buildings were shut down.
If you suffered a partial shutdown, there is NO REQUIREMENT that you also see a reduction in gross receipts!
Can my Texas business qualify for ERC?
If your business suffered a partial/total shutdown OR saw a serious reduction in gross receipts, you qualify. It’s that simple. Sunrise Business Solutions has helped countless businesses in Austin, Houston, Dallas, and San Antonio qualify for ERC. All you need to do is contact us today to get started.
We have helped:
- Doctors, dentists, chiropractors, surgeons, psychologists, medical specialists, and others in the medical field
- Transportation companies, including taxi cabs, freight trains, trucking companies, and charter buses impacted by COVID
- Retail stores, including brick-and-mortar establishments, specialty shops, car washes, and others.
- Restaurants, bars, and taverns, including fast food businesses and even take-out establishments.
- Convention centers and hotels/motels.
- Personal care businesses impacted by government orders, like spas, gyms, salons, nail salons, and fitness centers.
- Educational centers, like daycares which needed to socially distance children, clean and sanitize, and follow other government mandates.
If you are unsure if your TEXAS BUSINESS qualifies, then contact us today!
What’s the tax rate on my ERC refund?
Nothing. Your ERC credit doesn’t count as income for federal income taxes. For this reason, you won’t owe taxes on it. Of course, the refund will impact your deductible wage expenses on your tax returns. For this reason, be certain to share with your CPA your ERC tax credit information.
Do self-employed people in Texas qualify for ERC?
Not if you are majority owner of your business, defined as owning more than 50%. In that case, your wages don’t qualify.
If I own my own Texas business, can the wages for immediate family members qualify for ERC?
It depends on if you are majority owner. If you own more than 50%, then your immediate family member’s W2 wages do not qualify. However, if you own less than 50%, your own wages AND your immediate family member’s W2 wages qualify. Let Sunrise Business Solutions determine whether you should apply.
Is my business too large to receive ERC? Should I even bother contacting SUNRISE?
You should contact us without delay. Large businesses can still claim ERC, though a more restricted definition of “qualified wages” will apply. Nonetheless, you can still qualify for ERC refund—and many large business clients are receiving huge checks from the US Treasury as a result.
Under rules, a large employer is one with more than 100 FTE employees in 2020 and 500 FTE employees in 2021.
Never assume applying is not worth it. We’ve simplified the process so anyone can request a free analysis.Get in touch with our ERC Specialists today and get the maximum credit you can get for all six quarters!