Don't Wait! Claim the Employee Retention Credit (ERC) before the 2023 Deadlines

If your business was affected by the COVID-19 pandemic, the Employee Retention Credit (ERC) could be a lifeline for your business. However, time is running out to claim your ERC tax credit, and it's crucial to meet the requirements and file correctly. Qualified businesses will receive up to $26,000 per W-2 employee! 

In this blog post, we'll provide you a comprehensive guide on how to claim the ERC in 2023. We'll cover the eligibility criteria, deadlines, and the steps to calculate and file for the credit. You'll also learn about common mistakes to avoid and tips on tracking and recording the credit. This post has the most up-to-date information on the ERC, so you can claim it correctly before the 2023 deadline.

The Employee Retention Tax Credit was extended in 2020, as a component of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, for the first two calendar quarters of 2021. Furthermore, the refundable tax credit was extended again in 2021.

Introduction to the Employee Retention Credit (ERC)

The ERC was introduced as part of the CARES Act in March 2020 to provide economic relief to American workers and business owners impacted by the pandemic. It's a refundable payroll tax credit that helps eligible employers cover the cost of keeping their staff employed and paid during the pandemic.

It's essential to recognize that the ERC is a refundable payroll tax credit that doesn't require repayment like a loan. Its objective is to support employers whose businesses were adversely affected by the COVID-19 pandemic. Furthermore, it was specifically designed to assist small eligible employers in covering the cost of retaining their employees and paying their salaries during the pandemic's challenges.

Although the ERC expired in September 2021, qualified employers can still claim it retroactively by filing IRS Form 941-X up to three years after filing their payroll tax returns.


Upcoming Deadlines to File for the ERC 

Qualified employers who want to claim a ERC refund for Q2, Q3 or Q4 in 2020 must submit their 941-X by April 15, 2024. 

Qualified employers who want to claim a ERC refund for Q1, Q2 or Q3 in 2021 must submit their 941-X by April 15, 2025. 

The process of calculating the Employee Retention Credit may consume considerable time since it necessitates a thorough understanding of the guidelines and hundreds of pages governing the calculation of the ERC tax credit.

If you require further assistance in understanding the Employee Retention Credit (ERC) or claiming it in 2023, please feel free to contact one of ERC tax credit specialists. Our CPAs can answer your questions and provide you with personalized tax guidance to ensure you properly claim the ERC refund before the 2023 deadline. Schedule a consultation with one of our ERC specialists today by contacting us.