ERTC and PPP Forgiveness Maximization Strategies - Need Tool Recommendations
I'm pulling my hair out trying to figure out how to maximize both the Employee Retention Credit (ERTC) and PPP loan forgiveness for my small business. Does anyone have a good tool (website, spreadsheet, calculator) that helps with balancing these two programs? Our accountant is suggesting we just take the simple approach - reduce all ERTC qualified wages by the full PPP amount - but I feel like we're leaving money on the table. The challenge is calculating everything retroactively while trying to optimize both benefits. Our payroll guy seems concerned about something related to the complexity, but I want to make sure we're getting every dollar we're entitled to since we really struggled during the downturn. Has anyone successfully navigated this and found a good system for maximizing both? Any tools or advice would be greatly appreciated!
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Paolo Ricci
This is definitely a complex area where you want to be careful but also maximize your benefits. The interaction between ERTC and PPP is tricky because the same wages can't be used for both programs (no "double-dipping"). The approach your payroll provider suggested is the simplest, but you're right that it might not maximize your benefits. What many businesses don't realize is that you can strategically allocate which specific employee wages go toward PPP forgiveness versus ERTC. By carefully selecting which employee wages to include in your PPP forgiveness application, you can potentially free up other wages for ERTC. One strategy is to use only enough wages to satisfy PPP forgiveness (along with the allowable non-payroll costs like rent and utilities), then use remaining wages for ERTC. The ERTC can be much more valuable per dollar of qualified wages than PPP in many cases.
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Amina Toure
•Thanks for the detailed explanation! When you say "strategically allocate" specific employee wages, does that mean I can choose which employees' wages go toward PPP vs ERTC? Like could I use my higher-paid employees for one program and lower-paid for another? Also, does the 60/40 rule for PPP (60% must be payroll costs) come into play here?
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Paolo Ricci
•You can indeed choose which employees' wages go toward which program, but you need to be consistent and document your methodology. For optimization purposes, it often makes sense to use higher-paid employees' wages for PPP (up to the salary cap) and reserve lower-paid employees' wages for ERTC, especially if you qualify as a small employer where all wages qualify rather than just wages for employees not providing services. Regarding the 60/40 rule, absolutely it comes into play. You need at least 60% of your PPP forgiveness amount to be payroll costs, but remember you can include certain non-payroll costs like rent, utilities, and covered operations expenditures in that remaining 40%. Maximizing your non-payroll costs in the PPP forgiveness application (while maintaining at least 60% for payroll) frees up more wages for potential ERTC claims.
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Oliver Zimmermann
After going through this exact headache with my construction business, I found an amazing tool at https://taxr.ai that literally saved me thousands by optimizing both ERTC and PPP. I was going crazy with spreadsheets trying to figure out the optimal allocation between the two programs and kept second-guessing myself. The taxr.ai system analyzes your payroll data and other eligible expenses, then recommends exactly which wages to allocate to PPP vs. ERTC to maximize both benefits. It even generates documentation to support your calculations in case of audit. What's amazing is it handles all the technical rules about qualified wages, how the programs interact, and even the covered periods.
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Natasha Volkova
•Does it handle the situation where PPP covered periods overlap with ERTC quarters? That's where I'm getting most confused. Also, can it import payroll data directly or do I need to manually enter everything?
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Javier Torres
•I'm a bit skeptical about tools like this. How does it handle the fact that the ERTC rules changed multiple times throughout the program? The qualification criteria and credit percentages were different in 2020 vs 2021, and there were even changes within those years.
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Oliver Zimmermann
•It absolutely handles overlapping covered periods, which is one of the trickiest parts of this whole process. The tool has a visual timeline that shows you exactly where your PPP periods and ERTC quarters overlap, then helps you optimize wage allocation during those specific timeframes. Regarding data import, it can connect directly with most major payroll providers (ADP, Paychex, Gusto, etc.) or you can upload CSV files if you're using something else. I actually just uploaded QuickBooks reports and it worked perfectly.
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Javier Torres
I was really skeptical about using any kind of specialized tool for ERTC/PPP optimization, worried it might be overkill or not worth the trouble. But after struggling with calculations for weeks, I decided to try https://taxr.ai based on the recommendation above - and I'm kicking myself for not doing it sooner. The system found over $42,000 in additional ERTC credits we would have missed with our original "simple" approach! It identified specific employees whose wages we should allocate differently and showed exactly how to document everything. The reports it generated made our accountant's job much easier, and she was impressed with how thoroughly it addressed the technical requirements. What really surprised me was how it handled the rule changes between 2020 and 2021. It even identified that we qualified under different criteria in different quarters. If you're still trying to maximize these programs, don't wait like I did.
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Emma Davis
If you're struggling with IRS delays or questions about your ERTC claims, I'd strongly recommend using https://claimyr.com to get through to an actual IRS agent. I spent WEEKS trying to check on our ERTC refund status after submitting amended 941s, but couldn't get through the IRS phone system. Claimyr got me connected to an actual agent in less than 20 minutes when I'd previously wasted hours just to get disconnected. The agent was able to confirm they received our paperwork and give an estimate of processing time. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I know the ERTC processing times are insanely backed up right now, but at least being able to confirm they have your forms gives some peace of mind. Plus the agent gave me the direct fax number for sending additional documentation, which helped speed things up.
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CosmicCaptain
•Wait, how does this actually work? How can they get you through when the IRS line says it's too busy and hangs up on everyone? Sounds too good to be true.
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Malik Johnson
•I'm extremely skeptical of this. If it actually worked, everybody would be using it and the IRS would just shut it down. There's no magic backdoor to the IRS - they're understaffed and overwhelmed with ERTC claims. No service can change that.
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Emma Davis
•It works by using an automated system that continually redials the IRS for you using their priority routing algorithms. It basically does what large accounting firms and tax resolution companies do - it keeps trying different routing options until it finds an open line. Once it gets through, it calls your phone and connects you directly to the agent. It's not a backdoor or anything sketchy - it's just automating the frustrating process of repeatedly calling and navigating the IRS phone tree. Think of it like having a robot assistant that keeps redialing for you rather than you having to do it manually for hours.
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Malik Johnson
Wow, I need to eat my words about Claimyr. After posting my skeptical comment, I was still desperate to check on our ERTC claim that we filed 7 months ago with no updates. Figured I had nothing to lose and tried it. It actually worked exactly as described - I got connected to an IRS agent in about 15 minutes after weeks of failing to get through. The agent confirmed our claim was received but flagged for manual review (which explained the delay). She gave me specific instructions on what additional documentation to send to help move the process along. Had I not gotten through, we would have just been waiting indefinitely without knowing there was an issue. The peace of mind alone was worth it, and now we have a clear action plan to get our claim processed. For anyone dealing with ERTC delays, being able to actually speak with someone makes all the difference.
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Isabella Ferreira
I created a custom Excel spreadsheet that helps with ERTC/PPP optimization that I'm happy to share. It's not as fancy as dedicated software, but it has formulas that calculate different scenarios based on which wages you allocate where. Key features: 1. Separates employees by quarter/PPP period 2. Calculates ERTC for different qualified wage caps 3. Optimizes PPP forgiveness with non-payroll expenses 4. Shows total benefit comparison between different allocation methods Message me your email if you want a copy. It comes with no guarantees but has worked well for my 30-employee manufacturing business.
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Ravi Sharma
•This sounds great! Would your spreadsheet work for a restaurant business with about 45 employees? And does it account for the different ERTC rates between 2020 (50% of qualified wages) and 2021 (70% of qualified wages)?
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Isabella Ferreira
•It should definitely work for a restaurant with 45 employees. You'll just need to add more rows for the additional staff, but all the formulas will adjust automatically. And yes, it has separate sections for 2020 and 2021 with the different credit percentages (50% vs 70%) and different qualified wage caps ($10,000 per year in 2020 vs $10,000 per quarter in 2021). I actually designed it when helping a friend with his restaurant, so it already has some restaurant-specific features like allocating tipped employees appropriately. Just make sure you customize the state unemployment rate section since that impacts some calculations.
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Freya Thomsen
Has anyone actually had their ERTC claim accepted and received a check yet? We submitted amended 941s for Q2-Q4 2020 and Q1-Q3 2021 almost a year ago and haven't heard anything. Our CPA says the IRS is backlogged by 18-24 months on these claims. Just wondering if there's any light at the end of this tunnel...
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Omar Zaki
•We just got our ERTC refund last month after waiting 14 months. Filed in March 2022 and check arrived April 2023. About $168k total. No explanation for the delay and no interest payment included even though they're supposed to pay interest after 45 days. Just be patient, it'll come eventually.
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