What is the Employee Retention Credit (ERC)?
The ERC is a refundable tax credit (Employee Retention Credit (ERC), also known as the Employee Retention Tax Credit (ERTC), that the IRS has made available to most organizations due to the 2020 COVID-19 pandemic. The tax credit can be up to $26,000 per employee for if the business had w2 employees in 2020 and 2021. The ERC program was designed to encourage employers to keep their employees on staff and pay them, despite the economic downturn caused by the pandemic. The credit results from the passage of the CARES Act, which was signed into law in March 2020, around the same time as the Paycheck Protection Program. The credit is not a loan and does not have to be paid back. It is meant to be a tax refund to businesses that paid wages to their employees during the pandemic. The ERC is a critical program designed to help businesses survive the pandemic and keep their employees on the payroll.
Most businesses with employees in 2020 and 2021 now qualify for the ERC as the IRS has changed the rules. Businesses must show a 20% to 50% decline in revenue over certain periods unless their business was negatively impacted due to Covid. A business can elect to write a "covid impact statement" describing how covid impacted their business. Examples include loss in revenue, store or office shutdown, decrease in customers, etc. Before the change, a business did not qualify if they already received a PPP loan. Most businesses are familiar with the ERC but do not think they qualify as they are unaware of the rule change. There is a large opportunity to help educate these companies to obtain their erc refund!
How Long Does It Take To Receive the ERC Credit?
The time taken to receive an ERC refund can vary depending on several factors and business circumstances. In general, businesses report around six months for the IRS to process their claim to the time the business receives the checks. At the beginning of 2023, the IRS claimed to hire hundreds of employees to help catch up with all the backed-up logs. As of May 2023, the IRS is currently processing documents that were received in December 2022, affirming the approximate time of 6 months.
Who Processes ERC Claims?
An ERC processor is a company or organization specializing in helping businesses claim the employee retention credit (ERC) through the IRS. ERC processors offer a variety of ERC solutions, including filing for erc refunds and consultation, to help business owners claim the maximum size of credit possible.
By working with an ERC filing service, businesses can streamline the filing process for an erc refund and ensure they receive the maximum benefit. Overall, ERC processors play an important role in supporting small and medium-sized businesses as the ERC filing is highly complicated. The IRS Guidelines for this program is actually over 100 pages. This is why many cpas do not offer ERC services. This is also why choosing a reputable ERC processor is very important.
How to Become An ERC Referral Partner and Earn Big Commissions
Anyone can join an erc referral partner program; the programs are generally free. This is great for individuals that want to get their feet wet in affiliate marketing. The best part is that most programs don't require the affiliate to set up anything. The affiliate simply has to set up a meeting through the erc referral program. If the processor closes the deal, then the affiliate gets paid!
Over the past year, there have been dozens of Processors offering Affiliate and Referral programs that can be extremely lucrative to good affiliate marketers. Some individuals are even generating hundreds of thousands of dollars for themselves in under 12 months!
Does it cost anything to be an Affiliate or ERTC Referral Partner?
No, most processors do not charge anything to become a referral partner or affiliate marketer. ERC affiliate programs are free to join and offer attractive commission rates to its partners. As an ERC partner, you should get access to marketing materials, tracking links, and access to the affiliate dashboard to track your commissions and performance.
While there are no upfront costs or fees to participate in the program, you will need to promote ERC's products and services to your audience to earn commissions. The more sales you generate through your referral links, the higher your commission payouts will be. If you're interested in becoming an ERC affiliate, referral partner, or affiliate marketer, you can sign up easily sign with a processor to start earning commissions.
Just like any business, there may be startup costs, such as software and tools that will help you market and promote your affiliate links. Of course, additional software is not mandatory but can only help your online marketing. We recommend starting with at least email marketing software to prospect your leads.
How Much Can ERC Affiliates Earn?
ERC Affiliates have the potential to earn a significant amount of money in commissions. The amount that an affiliate can earn will depend on several factors, including the size of their immediate audience, the commission percentage, their experience, and the number of sales they make. Some ERC Affiliates earn a few hundred dollars per month, while others can earn six-figure incomes. The best affiliates out there are even crossing the seven-figure mark!
Most ERC Affiliate programs start their affiliates at a 10% commission, calculated on the ERC Processor Fee. What does this mean? Typically, ERC processors will charge around 20% of the total refund they can process for the client company. For example, if a Processor is retained, the company will spend weeks calculating and filing the necessary paperwork with the IRS. If the processor comes up with a credit amount of $100k for a client company, that client will pay a $20k fee.
This may seem like a steep charge, but it's the industry standard. The best part is that the erc client does not pay until they actually receive their checks from the IRS. So for the client, there is no upfront cost. If you were the affiliate that referred the deal to the Processor, then you would be paid 10% of $20k = $2k. The best part is that you don't have to sell anything. You simply have to refer the client through the erc referral program; they do all the work!
Although it's not a simple task to find prospective clients and close deals, the hefty commissions make it worthwhile! Now, if you partnered with a program offering a higher commission, your take home increases. The highest paying erc affiliate offers a whopping 17% referral fee. In this example, the referral program compensates you with a hefty $3400 commission! Imagine e closing 10 to 20 deals in a year. The commissions could replace your salary.
Can you only participate as an ERC Affiliate in the United States?
The short answer is no. Some programs will only accept US citizens or companies to partner with. But several companies out there will allow you to become an affiliate or partner, even if you live outside the US. It is important to understand your relationship with your affiliate partner as a contractor or how the agreement is structured.
It is important to note that any earnings from the ERC affiliate program may be subject to taxes, and consulting with a tax professional for guidance is recommended. Building a strong network as a referral partner can open up even more opportunities for profits through the partner program. With the potential for refunds and ongoing commissions, becoming an ERC affiliate can be a lucrative opportunity.
Remember that only US-based companies that had W2 employees in the years 2020 or 2021 may qualify. You should only target businesses in the US that are interested in claiming an erc refund. Some ERC Affiliate Companies will offer free training and resources such as b2b databases.
What is the Best ERC Affiliate Program in 2023?
When choosing an ERC Affiliate, you should evaluate the company’s reputation, commission structure, and record of paying out rewards to affiliates. Plenty of fly-by-night Affiliate companies have popped up due to the popularity of this program and the lucrative commissions, so beware.
The best ERC affiliate program will offer generous referral bonuses, clear communication on becoming an affiliate, and effective marketing materials to help promote the program. If you do some web research, you will see that Bottom Line Concepts is the definitive best processor. They have processed 2 billion in ERC Credits for giants such as American Express, MetLife, and even Domino’s. They have also helped thousands of small businesses obtain their ERC.
Bottom Line has by far the largest and best ERC Affiliate program. They have even partnered with names like Mr. Wonderful and Grant Cardone. Their program starts at 10% commission, but you can fast-track to 17% commission by signing up through iHub. Their negotiated commission is much higher because of their established track record. They have even built a robust backend portal with dashboards that tracks all of your leads and commissions! Bottom Line does not offer the portal directly.
When you sign up, you will receive a unique affiliate link to send your clients to set up and book a meeting directly with Bottom Line. Remember that you don't have to be on the calls, and you don't have to sell anything. Bottom Line’s expert team of erc specialists will call your client to see if they qualify for ERC and will do all of the work for you!
