What Quarters are Eligible for the ERTC?

July 27, 2023
Dayes Law Firm

It’s no secret that the COVID-19 pandemic has financially impacted many businesses since 2020, and continues to do so. The Employee Retention Tax Credit is just one option businesses can look into to try to ease some of the economic burden of the effects of the pandemic, and it is still available for business owners to retroactively apply for. 

But only specific quarters are eligible for the ERTC, and if you’re looking to apply, you’ll want to be aware of which they are for qualification purposes. 

What is the ERTC?

The Employee Retention Tax Credit, also referred to as the ERC or ERTC, is a government program that was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to incentivize businesses to keep employees on the payroll and to support businesses in the wake of the economic fallout of the pandemic. 

The ERTC remains available for eligible businesses, and your business may still be able to retroactively claim the tax credit. However, in some cases, there is less than a year left to do so before the first major ERTC deadline arrives. 

What Quarters are Eligible for the ERTC?

The ERTC is not available for tax quarters in 2022 and 2023. But you can still file an amended Form 941X (Quarterly Federal Payroll Tax Return) for specific 2020 and 2021 quarters. 

The ERTC is available to eligible employers for wages paid from March 13, 2020, through December 31, 2021. According to the IRS, it is meant “for businesses that continued to pay employees while shut down due to the COVID-19 pandemic or had significant declines in gross receipts” during that time period. 

Specifically, a recovery startup business can claim the Employee Retention Tax Credit for wages paid after June 30, 2021, and before January 1, 2022. Technically, the Infrastructure Investment and Jobs Act retroactively ended the ERTC as of September 30, 2021 for most businesses, but those are carved out as a special exception. 

To break it down, for 2020, quarters two (beginning March 13, 2020), three, and four qualify for the ERTC. Quarters one, two, and three qualify for many businesses in 2021, and finally, recovery startup businesses can qualify for the ERTC for the last quarter of 2021.

Call Dayes Law Firm for Assistance 

You may want to consider getting the assistance of a trusted tax professional to help you claim the ERTC. The team at Dayes Law Firm and our partners can help. 

If you’re unsure whether or not your business is eligible to apply, the attorneys at Dayes Law Firm can certainly work with you to figure that out. Our experienced legal professionals have already helped many businesses file for millions in Employee Retention Tax Credit refunds already, and we are confident we can assist you if you’re qualified to apply, too. 

Please contact us today for a free consultation to talk through any ERTC questions you may have. You can give us a call or fill out the form on this page to get in touch 24/7 and see how the Dayes ERTC can assist you and your business with any of your ERTC needs.