Ensuring Your ERC Filings Are Substantiated

1. 
   01

   Forms 941 for quarters ending June 30, 2020, Sep. 30, 2020, Dec. 31, 2020, March 31, 2021, June 30, 2021, Sept. 30, 2021, and Dec. 31, 2021.

2. 
   02

   Worksheet 1 (or similar worksheet) used to compute the ERC included on the amended returns for Q4 2020 and Q1, Q2, and Q3 2021.

3. 
   03

   Payroll journal for the months of March 2020 through December 2021.

4. 
   04

   List of employees paid sick and/or family leave.

5. 
   05

   The dates employees were paid sick and/or family leave.

6. 
   06

   The amounts paid to each employee for sick and/or family leave.

7. 
   07

   Employee statements about the COVID-19-related reason why they requested leave, and written support for that reason.

8. 
   08

   Statements required to be provided by employees that the employee is unable to work — including by means of telework — for that reason.

9. 
   09

   Documentation showing how the amount of qualified sick and family leave wages was determined, including records of work, telework, and qualified sick and family leave.

10. 
    10

    Documentation showing how the amount of qualified health plan expenses the employer allocated to wages (if applicable) was determined.

11. 
    11

    2020 and 2021 Forms W-2.

12. 
    12

    Business income tax returns for 2020 and 2021 (for review only, if available).

13. 
    13

    List of employees who were paid wages for which the ERC was claimed.

14. 
    14

    List of any individuals related to a shareholder owning 50% of the capital and profits interests in the entity who are employed by the company.

15. 
    15

    Wages paid to each employee for which the ERC was claimed.

16. 
    16

    Documentation that operations were fully or partially suspended due to governmental orders limiting commerce, travel, or group meetings due to COVID-19 — OR that the taxpayer experienced a significant decline in gross receipts.

17. 
    17

    Documentation showing how the taxpayer determined the amount of qualified health plan expenses allocated to the ERC.

18. 
    18

    Documentation related to PPP loans and related forgiveness, including the wages included on the loan application.

19. 
    19

    Spreadsheet or breakdown of gross receipts.

20. 
    20

    Analysis or breakdown of how wages were allocated between the ERC and the PPP loans, for each quarter from June 30, 2020 through Dec. 31, 2021.

^* Some U.S. territories, such as the CNMI or Guam, have varying requirements. For example, in lieu of profit & loss statements, the CNMI and Guam require Form OS-3105 (a gross revenue and tax computation form) to be completed. Guam additionally requires Form GRT-1, the Monthly Gross Receipts, Use and Occupancy Tax Return.