The ERC was not widely used until March 2021, when updated IRS regulations made this type of COVID-19 Relief more accessible. In short: thousands of businesses who once picked between the Paycheck Protection Program (PPP) and ERC can now possibly use both, by amending their Quarterly Form(s) 941.
The legislation expanded the ERC, a refundable payroll tax credit, to include wages for eligible employers from July 1, 2021 to December 31, 2021. In December 2020, the 2nd relief stimulus extended the ERC to June 30, 2021 and expanded the credit to $7,000 per employee per quarter in 2021.
It’s important to understand that the new extension allows you (the employer) to receive up to $14,000 in additional credits per employee, or up to $33,000 in refundable tax credits per employee. The following is an overview of this opportunity.
Remember the ERC can be claimed against the employer’s portion of employment taxes, including Social Security and Railroad Retirement. If your credit exceeds the amount due, it is then viewed as an overpayment and is refundable
Use our secure portal to upload your 941 returns, PPP loan documents, and raw payroll data.
We will use our expertise to calculate the exact value of the credit you can receive from the IRS.
We will prepare and help file the 941-X Amended payroll returns.
On November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act into law, and the Employee Retention Credit sunset date was moved from 12/31/2021 date to 9/30/2021 (for businesses other than ARPA Recovery Startup Businesses).
HOWEVER, this does not mean the ERC was eliminated! Eligible businesses can still apply for stimulus funds based on financials between 3/13/2020-9/30/2021.