ERC for Educational Institutions

IRSplus Helps Educational Institutions Claim the Maximum Employee Retention Credit for All Six Quarters—Up to $26,000 Per Employee

The COVID-19 pandemic disrupted virtually every educational institution in the country—from daycare centers to graduate schools. Both for-profit and non-profit educational institutions should be prepared to take advantage of all available tax benefits. The Employee Retention Credit (ERC) is one of the most valuable and underutilized aspects of the federal financial response to the COVID-19 pandemic. Educational institutions may qualify for up to a $26,000 refundable credit per employee.

At IRSplus, we are your greatest advantage in guaranteeing your ERC success. Backed by Berkshire Hathaway, our ERC specialists help educational institutions qualify for the maximum tax refund for all six quarters. Call us at 312-883-1888 or send us a message directly online to get immediate help from an ERIC specialist. We help educational institutions qualify for the Employee Retention Credit in as little as 60 seconds.

An Overview of the Employee Retention Credit (ERC)

The ERC comes from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) that was signed into law in March of 2020. The ERC is a fully refundable payroll tax credit through which qualifying employers—both businesses and nonprofit organizations—can receive a cash refund based on qualifying employee wages for the final three quarters of 2020 and the first three quarters of 2021. The maximum available benefit for a qualifying employee is $26,000. Get in touch with IRSplus today and get help filing for ERC and getting the maximum credit you can get.

How Educational Institutions Can Qualify for the ERC

Virtually every educational institution in the United States can qualify for the Employee Retention Credit. Under federal guidelines, an educational institution must meet at least one of the following two eligibility criteria in order to qualify for the ERC tax credit:

1. The educational institution must have be at least partially shut down as a consequence of a federal, state, or local government order at some point during the quarter; or
2. The educational institution must have suffered a significant fall in revenue (gross receipts) in a quarter. For 2021, a significant decline in revenue is defined as a 20 percent drop compared to the last comparable pre-pandemic quarter.

The key thing to understand is that the term “partial government shutdown” is defined broadly. Indeed, it is easier for most educational institutions to qualify on the grounds of a government shutdown than for a loss of revenue. Examples of government orders that let educational institutions qualify for the ERC include:

• Enhanced cleaning and sanitizing requirements;
• Social distancing regulations;
• Capacity restrictions;
• Remote learning requirements;
• Supply chain disruptions; and
• Complete shutdowns of operations.

Our ERC specialists have access to all of the shutdown government orders. We help clients—including daycare centers, colleges, universities, trade schools, etc—put together the complete package of materials that they need to qualify for the ERC.

We Serve All Types of Educational Institutions (For-Profit and Non-Profit)

Education in the entire country was radically disrupted by the COVID-19 pandemic and the public health restrictions. Educational institutions at every level—from those caring for toddlers to those educating professionals—helped to keep things afloat. IRSplus helps all types of educational institutions obtain the ERC. Examples of institutions we have served include:

• Child Care Centers (Daycare): Child care centers saw some of the more pronounced adverse effects from the COVID-19 pandemic. A stunning and alarming report from the United States Chamber of Commerce found that three-quarters of childcare/daycare centers were not even breaking even in 2020 and 2021. There were heightened cleaning/sanitizing requirements, social distancing and capacity rules, frequent shutdowns due to virus outbreaks, and many parents pulling kids from facilities. All child care facilities can and should file for the ERC.
• All Schools & Universities: Schools and universities also saw major disruptions during 2020 and 2021. The National Center for Education Statistics (NCES) reports that nearly 90 percent of college students were taking remote classes during the height of the pandemic restrictions. Schools, colleges, and universities can all file for the ERC.
• Tutoring Schools: Independent schools can apply for and receive a tax refund through the ERC. Independent schools include all types of tutoring programs. Many schools, businesses, and organizations that offer tutoring services were disrupted by the COVID-19 pandemic and the government shutdowns. Tutoring schools are eligible to file for the ERC that is the same as any child care center, private school, or public university. Any business that employs tutors and meets ERC eligibility standards—which virtually all educational institutions do—can qualify. If you want more information about applying for the maximum Employee Retention Credit for a tutoring school, please do not hesitate to contact the specialists at IRSplus.
• All Trade Schools: A trade school is generally a very hands-on environment. The remote learning imposed by COVID-19 created immense challenges for trade schools. They also had to deal with cleaning and sanitizing standards as well social distancing/capacity regulations. Trade schools throughout the United States can apply for and receive the ERC tax credit. If you have any questions about filing for the ERC as a trade school, we can help.

Can You Still Claim the ERC if You Receive PPP Funds?

Yes. The Payment Protection Program (PPP) and the Employee Retention Credit (ERC) are two wholly distinct federal programs. An educational institution that got PPP funds should still apply for the ERC. An educational institution that never actually filed for or may not qualify for the PPP should still file for the ERC. The standards are different. The vast majority of educational institutions are entitled to receive a payroll tax refund for wages paid to employees in 2020 and/or 2021 through the ERC.

It is Not Too Late: You Can Still Apply for the ERC for 2020 and 2021 in 2022

The Employee Retention Credit is available for the Q2, Q3, and Q4 of 2020 and well as Q1, Q2, and Q3 of 2021. This raises an important question: Can an educational institution still claim the ERC is 2022. The answer is a clear and unequivocal ‘yes.’ All businesses and organizations in the United States can still file for the ERC in 2022. It is not too late to take action. Federal regulations allow taxpayers to file for the Employee Retention Credit retroactively.

As drafted in the CARES Act, the ERC has a three-year lookback provision. In effect, this means that educational institutions (and other businesses) can file for the ERC three years after any given quarter. In 2022 you can still file for the ERC for all six quarters. To do so, you can file an amended Form 941 X with the IRS. The ERC specialists at IRSplus can help you file an amended return today.

If you or your educational institution has still not filed for the ERC despite being eligible, you are certainly not alone. The data consistently shows that fewer businesses and organizations are filing for the ERC than are actually qualified under the law. The National Federation of Independent Business (NFIB) found that fewer than 10 percent of small businesses had initially filed for the ERC for the 2020 tax year. There is still time to act. File for the ERC today.

IRSplus Helps Educational Institutions Maximize their ERC

One of the primary reasons why so many educational institutions still have not claimed their ERC for 2020 and/or 2021 is that the application process is complicated. There is good news: You do not have to navigate it alone. Our team helps businesses and organizations get the absolute ERC tax benefit. With IRSplus, educational institutions get:

• A 100 Percent Risk-Free ERC Analysis: There is no risk involved with exploring your ERC eligibility. Our team offers a comprehensive, 100 percent risk-free ERC analysis to educational institutions nationwide. All you need to do is provide us with some basic information and we will assess your eligibility for the tax credit for retaining employees. We are fully-insured by Berkshire Hathaway.
• Calculate Your Maximize Tax Credit for All Six Quarters: No sure how much you are entitled to receive through the ERC? It is a common issue. Calculating the ERC is notoriously complicated. With a proprietary system, we help educational institutions calculate and maximize the employee retention tax credit for all six quarters. We have helped clients secure millions in ERC funds.
• Take Care of the Entire Application Process: Our ERC specialists will take care of the entire application process. You do not need to worry about getting tied down in a seemingly endless stream of paperwork. With extensive experience helping education institutions and other businesses/organizations qualify, IRSplus offers better client services and more protection than the competition.
• Get Paid (Up to Six Checks from the IRS): Our ERC specialists will facilitate your tax refund. Under IRS regulations, qualified employers will receive a check for each of the six quarters that they qualify. The ERC is not like the PPP. There are absolutely no limitations on the money that can be used. The ERC is a cash refund for payroll taxes that have already been paid. Use the ERC funds however you see fit. It is your money and your choice.

Qualify for the Employee Retention Credit in as Little as 60 Seconds

At IRSplus, we have the knowledge, thoroughness, and specialized expertise that you can rely on. Get the maximum ERC cash benefit for all six quarters. If you have any questions or concerns about filing for the Employee Retention Credit for an educational institution, we are more than ready to help. Give us a call at 888-210-8870 or contact us online to find out more about how we can help. Our ERC specialists serve educational institutions nationwide.