Basic requirements for the ERC program
In order to determine your own eligibility for the ERC program in any allowed quarter, your business must have experienced at least one of the following situations:
- Revenue Reduction - At least a 50% decline of gross receipts in 2020 and at least a 20% decline of gross receipts in 2021 when compared to the same 2019 quarter.
- Government Mandated Shutdowns - Full or partial suspension of your business operations based on local, state, or federal government mandates.
- Supply Chain Disruptions - Government mandated shutdowns of your supplier(s) that affected your business operations and you could not find a suitable alternate supplier.
Please note that each of these requirements are very nuanced, and the IRS has issued specific guidance for each of them. To learn more, click the button below or visit the IRS's FAQ page.