The Employee Retention Credit (ERC) program is still offering financial relief to businesses that were impacted by the pandemic. This program provides eligible employers a tax credit for qualifying wages, and health insurance paid to employees in 2020 and 2021.
While you can retroactively apply for the credit, there are still specific deadlines you must meet.
It’s essential to plan ahead and focus on submitting one application at a time, so you don’t miss out on any potential savings.
Be on Time
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 before 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).
Do you qualify?
For 2020:
- 100 employees or less
- 50% decline in gross receipts when comparing any quarter in 2020 to the same quarter in 2019 OR
- Affected by a government shutdown mandate
For 2021:
- 500 employees or less
- 20% decline compared to the same quarter in 2019 OR
- Affected by a government shutdown mandate