What is the Maximum ERTC Per Employee, According to the IRS?
There is a lot of information about the Employee Retention Tax Credit (ERC/ERTC) floating around, and it can be hard to know what’s true and what isn’t when you’re a small business owner just trying to make sense of the tax credit qualifications. For instance, there are many claims about the maximum ERTC per employee an employer can claim, but what are the real amounts a business owner can expect to receive?
Claiming the ERTC Retroactively
The deadline to claim the Employee Retention Tax Credit hasn’t technically passed yet, even though the credit involves taxes businesses were required to pay for 2020 and 2021. Employers can still take a look at past quarterly payroll tax filings to determine eligibility and apply for the ERTC retroactively.
For all quarters in 2020, the deadline to apply for the ERTC is April 15, 2024. For all quarters in 2021, the deadline is April 15, 2025. Those dates might seem far away now, but April 2024 is in less than a year, and getting your documentation together to claim the ERTC can take a while, even with assistance from an ERTC-knowledgeable team like the tax attorneys at Dayes Law Firm.
It is advised to apply for the Employee Retention Credit sooner rather than later, so you can determine the maximum ERTC per employee you are eligible to claim with ample documentation to back up your application.
Qualify for the Maximum ERTC
If you haven’t yet applied for the ERTC and you are eligible to do so as a business owner, you could be leaving a significant amount of money on the table.
According to the IRS, the credit maximum for the ERTC per employee is $7,000 for each employee per quarter in 2021 – equaling $21,000 in total. But that’s in addition to the maximum credit of $5,000 per employee in 2020. Combined, you could potentially claim up to $26,000 per employee.
However, it should be noted that the IRS has capped the ERTC for Recovery Startup Businesses at $50,000 per calendar quarter. The circumstances and tax needs of every business can differ, and getting help from a trusted tax professional to work out your maximum ERTC claim amounts could be in the best interest of your business.
Dayes Law Firm and the ERTC
At Dayes Law Firm, we are committed to helping business owners determine whether or not they qualify for the ERTC and just how much they might expect in an Employee Retention Tax Credit refund. Our team and our partner firms have helped businesses file for millions in refunds already and have demonstrated we are the right choice to partner with on ERTC applications.
Let us prove to you why we’ve earned the reputation that we have when it comes to assisting with the Employee Retention Tax Credit. We can offer a free consultation regarding any ERTC questions you may have so you can decide if we are the right partners for you and the needs of your business.
Please don’t hesitate to call us today for a free, no-obligation evaluation of your ERTC eligibility. Contact us by phone or via the form on this page to see how the ERTC team at Dayes can give you the best chance of getting the highest potential tax credit refund for your business.