Is Your Business Still Eligible to Claim the Employee Retention Credit?

by | Mar 13, 2023 | Blog | 0 comments

Your business is still eligible to claim the employee retention credit.

The Employee Retention Credit (ERC) was a crucial support system for numerous businesses during the pandemic. It promised a much-needed financial lifeline to struggling companies as they navigated uncertain times. 

ERC was designed to encourage businesses to keep employees on the payroll by allowing applicable employers to claim credits. 

For 2020, the credit is 50% of qualified wages paid to employees between March 12, 2020, and December 31, 2020. For 2021, the tax credit is 70% of qualified wages paid to employees for the 1st through 3rd quarter of 2021.

Though the program ended on September 30, 2021, employers can still claim the ERC for any period of 2020 by April 15, 2024, and for the 1st through 3rd quarters of 2021, by April 15, 2025.

Any Form 941, Form 943, Form 944, Form 945, or Form 1042 filed for any period ending with or within a calendar year before April 15th of the succeeding year is deemed filed on April 15th of the succeeding year, even if the return is required to be filed prior to that date. If the return is filed after April 15th of the succeeding calendar year, the assessment period is three years from the date the return is filed. See IRC 6501(b)(2) and Treas. Reg. 301.6501(b)–1(b).

Are you still eligible to claim the employee retention credit?

It’s hard to find any company or non-profit that isn’t eligible. Before applying, make sure your business qualifies. 

For 2020:

  • You must have employed 100 employees or less.
  • You must have been affected by a government shutdown mandate.
  • You must have experienced a 50% decline in gross receipts when comparing any quarter in 2020 to the same quarter in 2019. 

For 2021:

  • You must have employed 500 employees or less.
  • You must have been affected by a government shutdown mandate.
  • You must have experienced a 20% decline in gross receipts when comparing any quarter in 2021 to the same quarter in 2019. 

At Miami CFO, we understand how complicated navigating the ERC can be. Our tax professionals have extensive knowledge to help you make the most of this great opportunity while maximizing your return and boosting your bottom line. 

Schedule a meeting with us today.