Today we're talking to Mike D., the owner of a construction company located on Long Island, NY. Mike's been a Baron Payroll client for more than 15 years. We've watched Mike's business succeed through good times and bad. When the COVID-19 pandemic hit, we looked for ways to help all our clients, including Mike get all the government stimulus money they were entitled to.
Along the way, we realized many business owners didn't know about and hadn't applied for all the money available to them. In speaking with them, we realized that there was a lot of confusion and misinformation on this topic. We hated seeing our business owner clients leave money on the table. So, to help others discover how easy it can be to qualify and get federal stimulus money, Mike D. agreed to this interview.
BP: Mike, it's a real pleasure meeting with you today. We look forward to learning more about how you got your hands on all this free money—and how others can too.
BP: How did you learn about ERCs?
MD: I heard about ERCs on the news but thought we wouldn't be eligible for an ERC since we had already gotten a PPP loan.
BP: How did you find out you were eligible for an ERC?
MD: Larry Kagan from Baron Payroll reached out to me and told me that the laws had changed and that we may qualify for ERCs now even though we got a PPP loan.
BP: What happened next?
MD: Larry analyzed our payroll data and carved out wages specifically for ERC eligibility. Baron prepared and filed the amended 941-X payroll tax returns for us and gave us all the backup documentation just in case we might need it.
BP: Why would you need backup documentation for your ERC filing?
MD: Larry explained that this would protect us on the off chance we were audited. He also advised us to save all Barons’ records, and documentation for the mandated six years.
BP: How much tax refund money did you get back?
MD: In all we received three checks from the US Treasury totaling $168,000.
BP: That's fantastic! How big is your company?
MD: With 40 employees, we're considered a small- to medium-sized business.
BP: What would you like to say to other business owners who haven't applied for their federal tax refund relief money yet?
MD: Don't make the same mistake we almost made by assuming you don't qualify. Speak to an ERC expert who can help you. Almost everyone I know has qualified.
BP: That's a good point! How many friends did you tell about the ERC program?
MD: All of them! And guess what?
BP: What?
MD: They all qualified and haven't stopped thanking me since!
BP: Were you surprised by how much ERC money you got?
MD: Yes, and I can't believe we almost didn't bother applying.
BP: How long did it take you to get the ERC tax refund checks?
MD: It took a little over four months.
BP: Is this all the money you're entitled to under the ERC program?
MD: No. The money we received was for the 2020 ERC program. However, Baron told me the ERC program had been expanded for 2021 and that we may qualify for much more in 2021.
BP: What's your takeaway on all this?
MD: I'm happy the PPP loan and the ERC programs rewarded me for keeping my doors open and my workers employed during the pandemic. Miraculously, we didn't have to furlough or lay anyone off.
BP: Do you feel guilty getting all this "free" money from the government?
MD: No. I view this PPP and ERC money as doing exactly what it was intended to do—keep my employees working. Never in a million years would I ever think I could get a loan from my bank and not have to repay it.
BP: Mike, it's been a pleasure talking to you. We look forward to helping you file your amended 941-X payroll tax returns for the 2021 ERC. Thank you!
MD: You're welcome!