There is still time to file for your Employee Retention Credit (ERC)!
The ERTC is a refundable payroll tax credit for wages paid by an employer whose business is either fully or partially suspended due to a COVID-19-related order or is experiencing at least a 10 percent decline in gross receipts compared to the same calendar quarter of the previous year.
How does employee retention credit work?
The Employee Retention Credit is a refundable tax credit available to certain businesses that qualify. Based on certain factors such as employee cap and qualified wages, specific business owners are entitled to a percentage of qualified wages an employer pays to employees after March 12, 2020, and prior to January 1, 2021.
Who qualifies for the employee retention credit?
To apply for the Employee Retention Tax Credit, employers must complete and file Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, with their quarterly federal tax return.
What is the deadline for employee retention credit?
The Employee Retention Credit sunset date was moved from 12/31/21 to 9/30/2021; however, you can still file retroactively as long as you meet the eligibility requirements.
Can you still apply for the ERC program in 2023?
Yes, there is still time to apply for the ERC program in 2023. To claim the ERTC tax credit, you will need to fill out Form 941-X. Luckily, the statute of limitations for filing amended quarterly returns is up to three years from the date of filing Form 941. For example, if you are a business owner that qualifies for the ERTC program during the third quarter of 2020, the amended documentation needs to be submitted by October 2023. Businesses have until 2024 to look back on their payroll during the qualifying period and apply for the ERC tax credit.
Get more info on the ERTC.