Are Assisted Living Eligible for Employee Retention Credit (ERC)?

Assisted Living
Unlocking Eligibility: Employee Retention Credit for Assisted Living Staff

Key Takeaways

  • Assisted Living Facilities may be eligible for the ERC, which offers up to $26,000 per employee.

  • Eligibility for the ERC is based on a decline in gross receipts or operations being fully or partially suspended due to government orders.

  • There are common misconceptions about the ERC that can lead to facilities missing out on valuable funds.

  • Working with specialized services like ERTC Express can help maximize ERC benefits for assisted living facilities.

  • The ERC is not exclusive to the senior living industry and is available to other qualifying employers as well.

Are Assisted Living Facilities Eligible for ERC Refund

First things first, what is the Employee Retention Credit? It’s a refundable tax credit designed to encourage businesses to keep employees on their payroll during the COVID-19 pandemic. And yes, this includes assisted living facilities. If your facility experienced a decline in gross receipts or was affected by government orders that led to a full or partial suspension of operations, you might be eligible.

If your facility’s gross receipts in a calendar quarter are less than 50% of the gross receipts in the same quarter in 2019, you meet one of the criteria for eligibility. Alternatively, if your operations were fully or partially suspended due to government orders related to COVID-19, that’s another tick in the eligibility box.

But it’s not just about checking off eligibility criteria; it’s about understanding how much you can claim and the process for doing so. The ERC can be claimed against payroll taxes and can amount to a significant sum—up to $26,000 per employee. That’s a potential game-changer for your facility.

Several governmental regulations affecting assisted living facilities include:

  • Enhanced protocols for cleaning and sanitization;
  • Social distancing rules and occupancy limits;
  • Mandates for residents to stay within the facility;
  • Suspension of non-essential services and activities;
  • Disruptions in the delivery of supplies and equipment.

Common Misconceptions about ERC Refund for Assisted Living Facilities

Misconceptions can be costly, and when it comes to the ERC, there’s no shortage of them. Some believe that if they’ve received PPP loans, they’re automatically disqualified from the ERC. Not true! Others think that the ERC is too complicated and not worth the effort. Again, this is a myth. The reality is that the ERC can provide substantial financial relief to eligible facilities.

  1. Assisted living facilities that received PPP loans are ineligible for the ERC.

  2. The ERC is only for industries other than senior care.

  3. Claiming the ERC is too complex and not worth the effort.

  4. The ERC doesn’t apply to businesses that haven’t laid off employees.

  5. The deadline for claiming the ERC has passed.

Each of these misconceptions can lead to missed opportunities. It’s essential to get the facts straight: receiving a PPP loan does not disqualify you from the ERC, the credit is very much available to the senior care industry, the effort can be well worth it considering the potential benefits, businesses that retained their staff are exactly who the ERC is for, and there’s still time to claim.

Remember, knowledge is power. By understanding the ins and outs of the ERC, assisted living facilities can take advantage of this critical support and continue providing essential care to their residents.

How ERTC Express Helps Assisted Living Facilities Maximize ERC Benefits

Now, let’s talk about how to not just claim the ERC, but to maximize it for your assisted living facility. This is where services like ERTC Express step in. We specialize in navigating the complexities of the ERC and ensuring that you claim the maximum credit you’re entitled to. We understand the nuances of the legislation and have the expertise to handle the process from start to finish.

With our help, you can ensure that no stone is left unturned when it comes to your facility’s eligibility and potential benefits. We can assist in calculating qualified wages, determining the impact of PPP loans on your ERC amount, and submitting the necessary paperwork. This kind of specialized assistance can make all the difference in your claim’s success.

Step-By-Step Guide: How ERTC Express Helps Assisted Living Facilities Maximize ERC Benefits

Let’s break down the process into a step-by-step guide:

ERTC Express Step-By-Step Guide
ERTC Express Step-By-Step Guide


Our Account Executives specialize in navigating assisted living facilities through the ERC application process, meticulously ensuring all necessary documentation is prepared and submitted. We’re always available to offer extra support, answer questions, and provide additional information throughout the application journey. This focused approach helps assisted living facilities understand the specific requirements for ERC eligibility, ensuring a smooth and informed process from start to finish.


Upon confirming your assisted living facility’s eligibility, our dedicated team of CPAs and Customer Success Agents initiates the processing of your ERC claim. To minimize the risk of an audit and ensure the claim’s defensibility, we implement our “Power of 3” system. This strategic approach involves the collaborative effort of three distinct CPA teams, each validating the final credit amount for your facility before the claim is submitted. This ensures a thorough review process, enhancing the accuracy and defensibility of your claim.


Our billing model for assisted living facilities is directly tied to the successful acquisition of ERC funds, offering a risk-free engagement. We are committed to your success, ensuring our services are aligned with achieving the best financial outcome for your facility. Our team supports you through the entire process, from eligibility to receiving the funds, with our fees only applied after your facility has successfully received the ERC refund. This commitment underscores our dedication to your financial well-being and satisfaction with our comprehensive services.

This guide is not just about getting through the paperwork; it’s about maximizing your benefit. By working with experts, you can feel confident that you’re claiming every dollar you’re entitled to.

Assisted Living
Maximize Your Assisted Living’s ERC Refund with ERTC Express

Get Maximum Assisted Living Facilities ERC Refund with ERTC Express

Maximizing your ERC refund can have a significant impact on your facility’s financial health. ERTC Express focuses on making the process smooth and efficient, ensuring that you receive the maximum refund with minimal hassle.

  • IRS Compliance: Our efforts ensure that assisted living facilities are in complete compliance with IRS regulations and requirements, securing the highest standard of compliance for their ERTC claims.
  • Trusted By The AICPA: The endorsement of our services for assisted living facilities by the American Institute of Certified Public Accountants (AICPA) signifies our unwavering commitment to excellence and adherence to the strictest professional and ethical standards.
  • U.S.-Based CPAs: Our team consists of U.S.-based CPAs with specialized knowledge in managing ERTC filings for assisted living facilities, equipped to handle the unique challenges these claims present and offer unparalleled support.
  • Power of Three – Audit Defense: To fortify the audit defenses of assisted living facilities, we implement our “Power of Three” strategy, which sees three independent CPA teams reviewing and agreeing on the final credit amount before claim submission, enhancing its robustness and defensibility.
  • Refund Maximization: We are committed to ensuring that assisted living facilities receive the maximum possible ERTC refund. By leveraging deep industry expertise, our specialists devise strategies that consistently outperform generic software estimates by 40-120%, proving the invaluable role of CPA expertise in optimizing ERTC claims for assisted living facilities.

Remember, the goal here is not just to keep the doors open but to thrive. By leveraging the ERC, you can help ensure that your facility continues to provide the high level of care that your residents deserve. And isn’t that what it’s all about?

Frequently Asked Questions (FAQ)

Can my facility still claim the ERC if we have already received a PPP loan?
Absolutely! Receiving a PPP loan does not disqualify your facility from claiming the ERC. However, you cannot use the same wages for both the PPP loan forgiveness and the ERC. It’s important to strategically allocate payroll costs to maximize both benefits.

What are the deadlines for claiming the ERC?
The deadlines for the ERC depend on when the qualifying wages were paid. Generally, you have three years from the date you filed your original payroll tax return to claim the credit by filing an amended return. This provides a window of opportunity for those who may have initially missed out.

Is the ERC available for all assisted living facilities?
Eligibility for the ERC is not industry-specific; it is based on the impact of COVID-19 on your business operations. Assisted living facilities that meet the eligibility criteria can certainly take advantage of the ERC.

How do I determine if my facility has had a significant decline in gross receipts?
A significant decline in gross receipts is defined as a decrease of more than 50% in a quarter compared to the same quarter in 2019. For 2021, the threshold is a decline of more than 20%. Calculating this can be tricky, so seeking professional assistance might be beneficial.

What are qualified wages for the ERC?
Qualified wages are wages and compensation paid to employees that are eligible for the credit. This includes the employer’s portion of health care benefits. The definition of qualified wages varies depending on the number of full-time employees and other factors.

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