Although the ERTC program ended in 2021, it can be claimed on amended payroll tax returns 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.

The ERTC reduces the amount of wage expense by crediting a portion of qualified employee compensation. It does not increase revenue, but it does decrease expenses, which means it increases your company's taxable profits.

Originally, there were three ways to claim the ERTC - you could take an advance in the form of a form 7200 when you were still in the qualifying quarter; you could take it on an original 941 after the quarter ends when you've calculated the amount; and lastly you could amend the 941 and claim it on the 941X. Since we are long past the qualifying quarters, generally the only way to claim ERC is on the 941X. That being said, the 941X assumes that the IRS already has an original 941 on record. If this is not the case and an original was not filed (ex: someone forgot to mail it out), then it would be wise to file the ERTC on the original document. This would save a lot of time for the IRS to process the request, and save you money on professional services fees to file on your behalf.

You can get them both, but cannot use the same wages to qualify. Once the PPP runs out (typically 10-15 weeks after it's received assuming no changes to payroll), then the ERTC kicks in. So, wages that were used to qualify for forgiveness wouldn't be used for the ERTC, but that still leaves a very large chunk of payroll that does qualify!

This is one of the more complex questions of ERTC eligibility. The IRS has outlined much of the answer in their documentation: https://www.irs.gov/newsroom/covid-19-related-employee-retention-credits-determining-qualified-wages-faqs. How does this apply to your business and unique situation? Contact us and we’ll help you sort through the details.