Is it Too Late for Businesses to Claim the Employee Retention Credit?

May 3, 2023
Dayes Law Firm

The Employee Retention Credit, also referred to as the ERC or ERTC, is a fully refundable payroll tax credit available to businesses. Business owners can claim the tax credit on qualified wages paid to their employees if they retained staff despite considerable setbacks during the height of the COVID-19 pandemic in 2020 and 2021 – but time to claim the Employee Retention Credit is running out, and the deadline is approaching sooner than you may think.

What is the ERC?

The ERC program was established under the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act. The program was meant to incentivize qualified businesses to keep employees on payroll and to support businesses during the worst of the financial crisis caused by the COVID-19 pandemic. The credit can be retroactively claimed for certain financial quarters. 

Businesses can still claim the ERC from past payroll tax returns and could receive up to $26,000 per employee. There are certain qualifications a business has to meet to claim the credit, and ERC experts at Dayes Law Firm can help you navigate the process of applying for the Employee Retention Credit. 

When Will it Be Too Late to Claim the ERC?

It isn’t too late to claim this valuable credit, but there is limited time to begin the process of applying and getting the funds that your business may be entitled to receive. 

For all quarters in 2020, the deadline to apply for the ERC is April 15, 2024. For all quarters in 2021, the deadline is April 15, 2025

Businesses can look back at their payroll tax filings for those time periods and determine if wages paid after March 12, 2020, through the end of the program are eligible. But some business owners may still be confused about whether or not they qualify and should apply for the ERC.

There are specific edibility requirements businesses must meet in order to qualify for the ERTC. For instance, you may qualify to apply for the ERC if your business operations were fully or partially shut down during a certain period of the pandemic OR you had to enforce reduced business hours because of governmental authority. 

There are also detailed guidelines in regard to losses during specific quarters of 2020 and 2021, and the specifics can get tricky. That’s why it might be in the best interest of you and your business to get the ERC specialists at Dayes Law Firm involved with your ERC application. 

Dayes Law Firm ERC Experts

At Dayes Law Firm, our team of experienced tax attorneys has already helped a number of business owners apply for the refunds they’re entitled to through the ERC program. We can help you claim the Employee Retention Credit and get the refund your business deserves. 

Please contact us for a free evaluation today. Our expert ERC team can discuss your options with you, and you are under no obligation to work with our firm after the initial consultation.

Let the ERC tax credit application experts at Dayes Law Firm assist you and your business. Give us a call today to see how we can help you claim the ERC before the program ends!