It's Not Too Late to Claim the Employee Retention Tax Credit
Is employee retention credit still available? Yes! If your business qualifies, you can apply for and receive ERTC funding on amended tax returns until the end of 2024.
What is the ERTC program?
The ERTC, also referred to as the Employee Retention Credit (ERC), is a refundable payroll tax credit that businesses receive on qualified employee costs including wages and certain benefits. The credit is calculated per employee, with a maximum of $5,000 per employee for 2020, or 50% of the employee cost, and a maximum of $21,000 per employee for 2021, or 70% of the employee cost. Businesses that received government funds including the PPP, RRF, and other payroll programs still qualify for the ERTC, they just cannot “double-dip” into the same claimed wages.
Do I qualify?
You’ll want to check your gross receipts. A business qualifies if it experienced a 50% drop in revenue in any quarter of 2020 compared to the same quarter in 2019, or 20% compared to 2021. If a business does not meet the minimum requirement for the revenue drop, there is an alternative - if a business can prove it had significant operations disruptions due to government-mandated COVID-19 restrictions. This is a broad provision, and the IRS released guidance on how to interpret it - click here to read.
New businesses, ones that started after 02/15/2020, can still qualify as a Startup Recovery Business under the program with modified limits.
Check your ERC eligibility for free
Check out our free interactive ertc eligibility calculator.
When is the ERTC application deadline?
Although the ERTC program ended in 2021, the credit can be claimed on amended payroll tax returns as long as the statute of limitations remains open, which is three years from the date of filing. That means until the end of 2024, eligible employers are still able to take advantage of the employee retention credit against applicable employment taxes and qualified wages paid to their employees through Dec. 31, 2021.
How do I claim my employee retention tax credits?
Contact Pioneer Accounting Group by calling or texting (206) 745-9492 or emailing ertc@pioneeraccountinggroup.com. We can help you with your ERTC application.
Our clients receive an average of $150,000 in ERTC funds. Many are surprised to find that their businesses qualify. We will help you find out if you qualify, and then will work with you to file the necessary paperwork.
Andrea Johnson
Your small business advocate for over 10 years.
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