NEW YORK--(BUSINESS WIRE)--Better Business Advice publishes guidance on current Employee Retention Credit (ERC) tax deadlines as of June 2023.
Better Business Advice, a leading business tax advice website, has published comprehensive guidance on the latest deadlines for filing Employee Retention Credit (ERC) claims.
As of June 2023, businesses can still file ERC claims for 2020 and 2021. The deadline for ERC claims for all quarters in 2020 is April 15, 2024. For all quarters in 2021, ERC claims must be filed by April 15, 2025.
For business owners looking to claim the maximum ERC they qualify for, Better Business Advice recommends Omega Tax Credits. Their specialized team undertakes a detailed ERC eligibility assessment for each business and files all relevant documents with the IRS - helping businesses reliably claim up to $26,000 per employee from the IRS.
Click here to book a 10 minute call with the Omega Tax Credits team to determine eligibility and get ahead of the ERC deadlines.
The Employee Retention Credit (ERC) is a refundable tax credit designed for businesses that faced challenges due to the COVID-19 pandemic. It is available for employers who continued to pay employees while either shut down due to the COVID-19 pandemic or experienced substantial declines in gross receipts between March 13, 2020, and December 31, 2021. Eligible employers can claim the ERC on their original or adjusted employment tax return for any applicable period within this timeframe. This credit serves as a financial support mechanism to assist businesses who retained their employees during these challenging times.
During the year 2020, businesses had the potential to receive up to $5,000 per employee, while in 2021, the credit amount increased to $7,000 per employee per quarter. These substantial figures underscore the extensive support available through the ERC.
Deadlines for ERC Claims
- For Q1-Q4 2020: ERC claims must be filed by April 15, 2024.
- For Q1-Q4 2021: ERC claims must be filed by April 15, 2025.
When filing for the ERC, understanding the deadlines and the importance of timely submission is crucial. The filing window for the ERC aligns conveniently with businesses' regular income tax deadlines, but delay should be avoided. The IRS processes claims in the order received, making early submission vital for expedited processing.
To get ahead of the ERC deadlines, Better Business Advice recommends booking a call with the Omega Tax Credits team to determine eligibility and start the ERC filing process.
An employer is eligible for the ERC if it:
- sustained a full or partial suspension of operations limiting commerce, travel or group meetings due to COVID-19 and orders from an appropriate governmental authority or
- experienced a significant decline in gross receipts during 2020 or a decline in gross receipts during the first three quarters of 2021 or
- qualified in the third or fourth quarters of 2021 as a recovery startup business.
Businesses should note that certain limitations apply to the ERC. Wages reported as payroll costs for PPP loan forgiveness or certain other tax credits cannot be claimed for the ERC in any tax period. Consulting the latest IRS policies is advisable for businesses uncertain about their eligibility.
To read the full Better Business Advice ERC deadline guidance, click here.
About Better Business Advice: Better Business Advice is a leading business advice website dedicated to helping entrepreneurs and businesses succeed. As an affiliate, Better Business Advice may earn commissions from services mentioned in the links provided. The information provided by Better Business Advice does not, and is not intended to, constitute legal advice; instead, all information, content, and materials are for general informational purposes only.
