Better Business Advice has shared the most recently updated deadlines for Employee Retention Credit (ERC) claims as issued by the Internal Revenue Service (IRS).
As of September 2023, eligible businesses can still file ERC retroactive claims for 2020 and 2021. The ERC filing deadline for the 2020 tax year is April 15, 2024 while the deadline for the 2021 tax year is April 15, 2025.
Business owners who wish to maximize the ERC benefits they can receive are advised to consider ERC specialists such as BottomLine Concepts and Omega Tax Credits. These companies are experts at navigating the complex requirements, computations and documentation necessary to file ERC claims. With a maximum potential tax credit of up to $26,000 per employee, getting assistance through the application process can be crucial for business success.
Small and medium-sized businesses are recommended to contact BottomLine Concepts and schedule an ERC Introduction call to learn more about the tax program’s eligibility requirements and filing process.
Alternatively, Omega Tax Credits provides a free 10 minute consultation for businesses looking to understand employee wage qualifications, proper documentation and more.
Established by the CARES Act, the Employee Retention Credit is a tax credit designed to help businesses recover from the impact of retaining employees during the COVID-19 pandemic. It is available to small and mid-sized enterprises that can meet specific criteria, such as significant decline in gross receipts or operations interruptions due to government orders.
Businesses can claim up to $5,000 per employee for the 2020 tax quarters. This has been increased to up to $7,000 per employee per quarter in 2021.
Deadlines for ERC Claims:
- For 2020 (Q1-4): ERC claims need to be filed by April 15, 2024.
- For 2021 (Q1-4): ERC claims need to be filed by April 15, 2025.
In order to qualify, a business must have been affected by the COVID-19 pandemic in any of the following ways:
- Experienced partial or full suspension of operations that limited commerce, travel, or group meetings due to COVID restrictions or orders from governmental authorities
- Sustained a significant decline in gross receipts during 2020 or a decline in gross receipts during Q1 to Q3 of 2021
- Qualified as a recovery startup business in Q3 to Q4 of 2021
Better Business Advice recommends business owners to check their qualification and eligibility well ahead of the ERC deadlines by booking a call with BottomLine Concepts or scheduling a consultation with Omega Tax Credits to start the ERC filing process.
For the full Better Business Advice guidance on the ERC deadlines, click here.
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Andrew Mathews (andrew@betterbusinessadvice.com)
