It's Not Too Late to Claim the Employee Retention Tax Credit!

[Julio Gonzalez]

Did you know you know that while the Employee Retention Tax Credit officially ended in 2021, you can still claim this tax credit?

First off, what is ERTC? The Employee Retention Tax Credit is a tax benefit that is fully refundable. Companies are able to claim the tax credit equal to 50% of qualified salaries, up to $10,000 of wages per employee between March 12, 2020 and January 1, 2021. This credit has been extended into 2021 in order to provide more financial aid for those companies in need.

Second, Am I Eligible for the Employee Retention Tax Credit?

Tax-exempt organizations and non-governmental employers, but not self-employed individuals can claim this credit. They must meet the following two factors:

• An employer that experienced a substantial decline in gross receipts by more than 50% during a quarter in 2020 or 2021.
• A business whose operations were fully or partially suspended for any quarter in 2020 or 2021 due to a government order.

While the ERTC officially ended on September 20, 2021 (or December 31, 2021, for recovery startup businesses), eligible businesses can still retroactively claim the credit by filing an amended tax return.

To claim the ERTC, employers must file Form 941-X for each quarter during which qualified wages were paid.

If you need to file an amended tax return for the second, third or fourth quarter of 2020 to claim the ERTC, the deadline to do so is April 15, 2024.

For all three eligible quarters in 2021, the deadline to file amended tax returns is April 15, 2025.

If you’re thinking “I need help! What should I do?” The ERTC can be complicated. If you think your company may be eligible, I recommend speaking with your accountant, tax preparer and legal counsel as the first step.