Tax season is confusing, especially for business owners who continue to understand tax deductions for which they are eligible. The Employee Retention Tax Credit, or ERTC for short, was a policy created to aid business owners in their retention of employees during the COVID-19 pandemic. ERTC only applied to paid wages before Oct. 1, 2021, but it is not too late to make a claim.
Filing Deadline for ERTC
Tax Time CPAs can amend your 2020 and 2021 returns to claim ERTC, worth up to $7,000 per quarter per employee if you are eligible. Tax return amendments are possible within three years after filing your return, so it is not too late.
The Employee Retention Tax Credit is one of the more robust tax credits for small businesses. Organizations qualify if their business was fully or partially closed in 2020 or 2021 due to the pandemic. Another qualification includes the impact on revenue. You could qualify if your business revenue were impacted by more than 50% in 2020 or more than 20% in 2021.
“We see too many small businesses failing to take advantage of the ERTC because they simply don’t know it exists or fail to realize they qualify. Those who are aware don’t know they can still amend their former returns to collect on the money available,” said Mike Hurdle, CEO and President of Tax Time CPAs – a Colorado-based tax firm.
Those who took advantage of the paycheck protection plan, or PPP, may also be eligible. The rules surrounding ERTC vary from year to year. It is important to learn your eligibility before it is too late. Our in-house tax advisors can help small businesses know whether or not they qualify for the Employee Retention Tax Credit.
Our firm has helped clients file for over $500,000 in ERTC thus far. We can help you do the same. Call today and learn more.