As a business owner, you may have heard that the ERTC is a fully refundable tax credit your business can potentially receive. It’s available for businesses and tax-exempt organizations that eligible employers that paid qualified wages to some or all employees after March 12, 2020, and before January 1, 2022, can qualify to claim.
But what does ERTC stand for? And is it the same as the ERC?
ERTC Meaning
ERTC is an acronym that’s short for Employee Retention Credit. And yes, it is the same as the ERC, they’re just different abbreviations for the same government tax credit program.
Companies that will help you with filing for the Employee Retention Tax Credit – or, in the case of our firm, tax professionals that can assist you in doing so – can use either term and may do so interchangeably. It’s a matter of personal preference but is ultimately about the same tax credit.
What is the ERTC?
As aforementioned, the ERTC is a completely refundable payroll tax credit some businesses can claim. Business owners can claim the ERTC on qualified wages paid to their employees if they kept staff on their payroll in spite of the uncertainty and major financial setbacks at play during the height of the COVID-19 pandemic in 2020 and 2021.
The CARES Act – also known as the Coronavirus Aid, Relief, and Economic Security Act – was passed in March 2020 and included the Employee Retention Credit. It was a $2 trillion stimulus bill that included direct benefits to workers, small businesses, families with kids, the health care system, and to other areas of need following government shutdowns as a result of the pandemic.
ERTC Extension
Later, the ERTC was extended through June 30, 2021, as part of the Consolidated Appropriations Act (CAA). The American Rescue Plan Act of 2021 (ARPA) modified the ERTC again and extended it through December 31, 2021.
Finally, the Infrastructure Investment and Jobs Act, signed into law on November 15, 2021, changed the dates of the ARPA ERTC extension and made it so, “Most taxpayers became ineligible to claim the ERC for wages paid after September 30, 2021,” according to the IRS.
However, Recovery Startup Businesses are still eligible to claim the Employee Retention Tax Credit for wages paid after June 30, 2021, but before January 1, 2022.
Getting ERTC Application Assistance
We recommend getting assistance from a team experienced in dealing with the Employee Retention Tax Credit if you haven’t yet applied and are looking to do so now.
At Dayes Law Firm, our experienced legal professionals and our partners have already helped many businesses file for millions in ERTC refunds already. Our firm has earned a reputation for success when it comes to the ERTC program, and we’d be more than happy to support you and your business in filing for the tax credit, too.
Please contact us to see how the ERTC professionals on the team at Dayes Law Firm can help you and your business with your ERTC application. Give us a call at 1-800-503-2000 or fill out the form on this page to get in touch.
At Dayes, we have the answers to all of your Employee Retention Tax Credit questions. Please feel free to reach out at your earliest convenience, and someone from our experienced ERTC team will be in touch soon!