After COVID-19 hit businesses, the US Government announced the ERTC under the CARES Act. The idea was to provide social and monetary protection to the businesses that have to shut down their operations during COVID-19. Most businesses that have seen a 20% to 50% decline in their gross receipts are also eligible for the same. It was enacted in March 2020 when the pandemic was at its peak, and no one was allowed to operate their business except the businesses selling essential things. However, a few businesses still have not availed of the tax benefit under the ERTC can now take the tax credit until 2024.
Is it too late to Avail ERTC Benefits?
Well, not at all! You can still avail of the Employee Retention Tax Credit from the Government. You must file the amended tax return to claim that benefit under the ERC Program. Businesses can take help from reputed firms to file tax returns and claim their $26,000 per employee through payroll tax credits.
If your business has to shut down its operations partially or fully during 2020 and 2021 or the gross receipts saw a sharp decline compared to 2019, you stand eligible to claim it. The employers who qualify for this tax credit have up to three years until 2024 to amend their quarterly tax filing under Form 941-X. The $26,000 per employee tax credit can be potentially claimed, like $5,000 per employee for 2020 and $7,000 per quarter in 2021.
Moreover, the IRC notice issued for 2021-2020 provides the full guidelines on how businesses can still claim the tax credit retroactively. You can check the related FAQs to the Employee Retention Credit and how to claim the tax credit to receive the stated amount. The Government has also issued an update regarding the ERTC that the employers can check out to know if they fulfill the present criteria or not.
Update on ERTC
The businesses still in a dilemma about getting the ERTC benefits need to read this issued update for an insightful view. It will help you to reach the concerned authorities quickly.
- You must compile the gross receipts for 2019, 2020, and 2021. It will help you determine whether there is a downward trend in any quarter in the following years.
- The Recovery Startup Business is for businesses that started their operations after February 15, 2020, and possesses gross receipts under $1,000,000. These companies have to shut their operations following government orders.
- If your business does not qualify under the gross receipt term, check out whether your business got suspended fully or partially during the pandemic.
- You must check the PPP and loan forgiveness with the firms working on your taxes to get this benefit.
As the list is long for the businesses claiming the ERTC benefits, it may take around 10-12 months or longer for IRS to regarding the same. Make sure to take the help of a professional consultant dealing with ERTC.
Businesses still looking for suitable ERTC solutions can reach out to ERC Today. They are an industry-leading firm helping every type of business to claim their ERTC benefit on time.Â
