While most business owners have already filed their taxes for 2020, the new report from Scott Hall explains it is not too late to claim Employee Retention Tax Credits (ERTC) by updating their files. The report also includes information about changes made to eligibility requirements early in 2021.
To learn more about changes to the ERTC program, please visit https://vimeo.com/661297978
The newest round of changes to the ERTC means that many business owners who were not previously eligible to receive tax credits now are, even if they filed for the Paycheck Protection Program (PPP) in 2020. The Consolidated Appropriations Act, passed in 2021, included an amendment to the program that allows employers to benefit from both the PPP and the ERTC programs.
Unlike the PPP, credits claimed through the ERTC program are not a government loan, and do not have to be paid back at any point. Eligible employers can claim a percentage of wages paid to employees from March of 2020 up to September 30, 2021.
To be eligible for ERTC, employers must have continued trade in 2020 or 2021, and suffered financial losses because of the pandemic. Losses may include time the business spent closed or partially suspended because of a government order or lockdown. Employers may also be eligible if they can show that their company suffered a significant loss in gross receipts.
According to the report, employers may claim up to $28,000 in credits per eligible employee for 2021. To reach that number, employers can claim up to 70% of an employee’s first $10,000 of wages, for $7,000 in credits, per quarter.
Employers who have already filed their 2020 taxes may adjust their claims to include the ERTC program using a 941-X form. While employers may file for the program themselves, the report suggests that an ERTC expert may make the process faster, and help them maximize their credits.
To claim their credits through an ERTC expert employers will need to upload their 941 returns, PPP loan documents, and raw payroll data to a secure server. With that information, accountants specializing in ERTC claims can calculate their maximum allowable credits, and help them file with the IRS.
To determine their eligibility, employers can take a brief quiz at https://ertcquiz.com
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Ireland Daily News journalist was involved in the writing and production of this article.