The Employee Retention Tax Credit, also referred to as the ERC or ERTC, encouraged employers to keep their workers on staff during the early years of the COVID-19 pandemic. The tax credit is for quarterly payroll tax filings from 2020 and 2021. But when did the ERTC credit start in the first place?
Start of the ERTC
The CARES Act – short for the Coronavirus Aid, Relief, and Economic Security Act – was passed on March 27, 2020, and created the ERTC. But the credit could be calculated on eligible wages paid even before that – but not long before.
Initially, the ERTC was for eligible wages paid between March 12, 2020, and December 31, 2020. So, while the program started in late March 2020, the credit “started” in mid-March in the sense that wages could be claimed for a period slightly before the date of the passage of the CARES Act.
ERTC Extended
The Consolidated Appropriations Act (CAA) extended the length of the ERTC program for the first time – through June 30, 2021.
Then, the American Rescue Plan Act of 2021 (ARPA) extended the Employee Retention Tax Credit again. It was extended through December 31, 2021, giving businesses a financial leg up to continue recovering from those first months of economic uncertainty due to COVID.
However, the Infrastructure Investment and Jobs Act was later signed into law on November 15, 2021, and changed the dates of the ERTC extension. For many businesses, due to that new legislation, the ERTC applied to wages paid through September 30, 2021, rather than through November.
While Recovery Startup Businesses were still eligible to claim the Employee Retention Tax Credit for wages paid after June 30, 2021, and before January 1, 2022, “Most taxpayers became ineligible to claim the ERC for wages paid after September 30, 2021,” according to the IRS.
Future of the ERTC
The Employee Retention Tax Credit was an important tax credit for businesses fighting to stay afloat in the wake of COVID-19 shutdowns and general stress on both customers’ wallets and businesses’ bottom lines.
As the economy seems to be recovering from the impact the pandemic had on it, it’s not likely the ERTC will return. The ERTC is not available for filings from 2022 and there’s no indication it will be available for tax filings this year.
However, there is still time to claim the ERTC tax credit retroactively. The tax credit can be claimed for quarterly payroll tax filings from 2020 and 2021, and businesses can claim the Employee Retention Tax Credit using an amended tax form.
ERTC Tax Credit Assistance
The team of experienced tax attorneys at Dayes Law Firm can help you apply retroactively for the ERTC now. We can help you file the appropriate amended quarterly payroll tax returns to claim the money your business is entitled to and assist you in gathering all of the documentation needed to do so.
Dayes and its partners have already worked to help other businesses apply for over $250 million in ERC claims to date, and we are still taking on new clients! Please feel free to call us at 602-888-2900 or fill out the form on this page to contact us to learn more.
We are available via our 24/7 live chat or email, and there is no upfront cost to hire our firm. Please get in touch with us at your earliest convenience to see how Dayes can make all the difference in you getting the funds your business is qualified to receive through the ERTC program.