Is there still time to apply for the Employee Retention Credit (ERC) in 2023? Yes!
Businesses often find government regulations confusing especially when there are frequent changes in the regulations and deadlines that are hard to comprehend. The Employee Retention Credit (ERC) offered by the IRS under the CARES Act is one such program. Our team of CPAs are here to help you navigate the complexities of the ERC program.
If you are a business owner who had to close partially or suffered a reduction in revenue due to COVID-19, you may still be eligible to claim the employee retention credit (ERC) in 2023! The ERC tax credit can provide financial relief for your business in 2023, and can be claimed for a maximum of 50% of wages paid to permanent, full-time employees in 2020, and 70% in 2021. It is important to note that this credit does not apply to contractors or suppliers. The credit is applied as a deduction from your business taxes and is refundable. Get back up to $26,000 per W-2 employee.
The original program allowed businesses to claim the ERC tax credit for a period of three years, meaning you can claim expenses from 2020 until April 15, 2024 and expenses from 2021 until April 15, 2025. Given the approaching deadline, it may be helpful to consult with our ERC tax professionals to determine if claiming the ERC is a suitable option for your business.
The Employee Retention Tax Credit (ERC) is certainly advantageous for both employers and employees. To ensure accurate calculation of your ERC tax credit, it is recommended to seek the assistance of a CPA. Additionally, be sure to file your claim before the deadlines to fully benefit from the ERC tax credit.
If you are uncertain about your eligibility for the ERC tax credit, it is best to consult a tax expert for proper guidance.