The Employee Retention Tax Credit program was part of the CARES Act. It was created to help businesses and workers get through the pandemic. After being signed into law, the program changed several times, including changes to eligibility and how calculations are handled. The last change gave the program a retroactive end date of September 20, 2021. This is where many people get confused regarding their ability to still take advantage of this tax credit.
Let’s look at what this date means and why there is still time to claim the ERC
ERC Deadlines
The end date for the Employee Retention Tax Credit moved several times due changes in legislation and additional
The end date for the tax credit program was moved several times due to IRS guidance and additional pieces of legislation. The final change came in November of last year when the Infrastructure Investment and Jobs Act was signed, giving the ERC program a retroactive end date of September 30, 2021. However, this is just the last day used to determine eligibility and calculate the tax credit. You still have a few years to actually claim the employee retention credit.
The law allows companies a period of time to file corrected quarterly tax returns using Form 941-X:
-3 years from date of original Form 941 filing
-2 years from date taxes reported on Form 941 were paid
During this time frame companies can take still advantage of the tax credit by simply calculating it, filing corrected quarterly returns, and reducing their tax deposits accordingly. So even if you’ve filed your 941s, there is still time to claim ERC if you’re eligible. You can use this ERC eligibility wizard to see if you qualify, or send us your information and we’ll answer your ERC questions.
The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.