Are Home Health Care Agencies Eligible for Employee Retention Credit (ERC)?

Key Takeaways

• The ERC is a refundable tax credit for eligible home health care agencies.

• Agencies can claim up to $26,000 per employee.

• Qualification hinges on meeting specific criteria related to the pandemic’s impact.

• Misconceptions can prevent agencies from claiming the ERC.

• Expert guidance is critical for maximizing the benefits of the ERC.

Are Home Health Care Agencies Eligible for ERC Refund

Let’s dive straight into the heart of the matter: Are home health care agencies eligible for the ERC? Absolutely, they are. If your agency was operational during the pandemic and faced challenges like disrupted operations or a significant drop in revenue, the ERC might be within your reach. What’s crucial is understanding the eligibility criteria, which can be broken down into simple terms.

Firstly, your agency must have been in business after February 15, 2020. Secondly, you either experienced a full or partial suspension of operations due to government orders related to COVID-19, or you saw a significant decline in gross receipts during any quarter of 2020 compared to the same quarter in 2019.

It’s important to note that for 2021, the rules expanded. Even if you didn’t see a decline in 2020, you might still qualify based on the 2021 criteria.

Common Misconceptions about ERC Refund for Home Health Care Agencies

There’s a lot of misinformation out there, and it’s time to clear the air. Misconceptions can hold you back from claiming what you’re rightfully owed. Let’s debunk a few myths:

1. “We received PPP loans, so we can’t claim the ERC.” Not true! While initially, this was the case, changes in legislation now allow agencies that received PPP loans to also claim the ERC, under certain conditions.

2. “Our revenue didn’t fall, so we’re not eligible.” This is a partial truth. While a decline in revenue is one pathway to eligibility, it’s not the only one. If your operations were partially or fully suspended due to government orders, you could still qualify.

3. “The process is too complicated.” It can seem daunting, but with the right guidance, claiming the ERC is manageable and well worth the effort.

Remember, these misconceptions can cost your agency thousands of dollars per employee. It’s worth taking a closer look to ensure you’re not leaving money on the table.

How ERTC Express Help Home Health Care Agencies Maximize ERC Benefits

ERTC Express is a beacon for home health care agencies navigating the complexities of the ERC. This service simplifies the process, ensuring that you don’t miss out on any benefits you’re entitled to. With ERTC Express, you can rest assured that your claim is in the hands of experts who are committed to maximizing your refund.

Step-By-Step Guide: How ERTC Express Help Home Health Care Agencies Maximize ERC Benefits

Working with ERTC Express is a straightforward process. Here’s what you can expect:

Step 1: ELIGIBILITY 

Our Account Executives are well-versed in guiding home health care agencies through the ERC application process, ensuring all required documentation is meticulously prepared for submission. They’re readily available to address any additional queries or provide further information throughout the entire process. This tailored approach ensures home health care agencies understand and meet the specific eligibility criteria for the ERC, setting a solid foundation for a successful claim.

Step 2: PROCESSING

Once eligibility is confirmed, our specialized team of CPAs and Customer Success Agents begins the detailed work of processing your home health care agency’s ERC claim. To minimize audit risk and enhance the defensibility of your claim, we implement our strategic “Power of 3” system. This system involves the collaboration of three independent CPA teams, who must reach a consensus on the final credit amount for your agency before the claim is submitted, ensuring thoroughness and accuracy.

Step 3: RECEIVE YOUR FUNDS

Our billing model for home health care agencies is success-based, meaning you will only be billed after your ERC funds have been received. This approach aligns our success directly with yours, offering a no-risk solution to pursuing your ERC claim. We’re committed to supporting your agency through to the successful reception of funds, and only then do we process our service fees, underscoring our commitment to your financial benefit and overall satisfaction with our services.

This hands-on approach ensures that your claim is not only maximized but also fully compliant with IRS regulations.

Get Maximum Home Health Care ERC Refund with ERTC Express

In conclusion, home health care agencies have a significant opportunity to claim the ERC and infuse some much-needed funds back into their operations. With the expert assistance of ERTC Express, the process is demystified, making it accessible and achievable for agencies of all sizes.

• IRS Compliance: We are fully committed to guiding home health care agencies through IRS regulations and requirements, ensuring their ERTC claims achieve the highest compliance level possible.
• Trusted By The AICPA: Our service for home health care agencies, endorsed by the American Institute of Certified Public Accountants (AICPA), showcases our dedication to maintaining excellence and upholding the highest professional and ethical standards in the industry.
• U.S.-Based CPAs: Our team of U.S.-based CPAs brings specialized expertise to the table, particularly in handling the complex ERTC filings for home health care agencies. They are adept at navigating the intricacies of these claims, providing exceptional support to ensure successful outcomes.
• Power of Three – Audit Defense: For home health care agencies, we employ a robust “Power of Three” audit defense strategy. This involves collaboration among three separate CPA teams to unanimously agree on the final credit amount, significantly strengthening the claim’s defensibility and audit protection.
• Refund Maximization: Our dedication to home health care agencies extends to maximizing their ERTC refund. Our specialists employ strategic approaches to uncover the most effective refund optimization methods, often surpassing software-based estimates by 40-120%. This success rate highlights the superior value of utilizing real CPA expertise for home health care agencies’ ERTC claims.

Don’t let misconceptions hold you back from what you’re entitled to; take action and claim your ERC today.

Frequently Asked Questions (FAQ)

Are home health care agencies eligible for the Employee Retention Credit under the CARES Act?

Yes, home health care agencies that meet the criteria set forth by the CARES Act are eligible for the Employee Retention Credit. This includes agencies that experienced a full or partial suspension of their business operations due to government orders related to COVID-19 or a significant decline in gross receipts during the pandemic.

Can agencies that received PPP loans still claim the ERC?

Yes, following legislative changes, agencies that received PPP loans may still be eligible for the ERC, provided they meet the other requirements and do not claim the same payroll costs for both programs.

Is the ERC process complicated?

The ERC process can be complex, but with the right support from services like ERTC Express, it can be navigated successfully to ensure agencies receive the maximum refund they are entitled to.

Does profitability disqualify an agency from claiming the ERC?

No, profitability does not automatically disqualify an agency from claiming the ERC. The key factors for eligibility are related to the impact of COVID-19 on the agency’s operations and revenue.

Home health care agencies have a duty to their patients and employees to remain financially healthy. The ERC is a tool designed to support that stability, and with the right guidance, it can be a lifeline in these challenging times.

Can home health care agencies claim the ERC for all employees, or are there limitations?

Home health care agencies can claim the ERC for all employees, but there are limitations based on the size of the business. For businesses with more than 100 full-time employees in 2019, the credit is only available for wages paid to employees not providing services. For smaller businesses with 100 or fewer full-time employees, the credit applies to all employee wages, regardless of whether they are providing services.