TurboTax Live tax expert products. IRS issues guidance for amended returns related to Employee Retention Introduced in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act),the Employee Retention Credit was created by Congress to encourage employers to keep their employees on the payroll during the months in 2020 affected by the coronavirus pandemic. If youre trying to qualify for 2021, you must show that you experienced a decline in gross receipts by 80% compared to the same time period in 2019. However, its considered a fully refundable tax credit, so youre getting up to 50% of $10,000 in wages per quarter for each employee if you are eligible and were adversely affected by the pandemic. That means the deadline for claiming the ERTC is three years after the original due date for the tax return. This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages. Keeping this cookie enabled helps us to improve our website. Eligible taxpayers can claim the ERC on an original or amended employment tax return for a period within those dates. There's Still Time to Claim the Employee Retention Tax Credit - SHRM Some businesses, especially those that received a Paycheck Protection Program loan in 2020, mistakenly believed they didnt qualify for the ERC. It also looks at the eligibility criteria and walks you through how to claim this credit. The ERC was due to expire on December 31, 2020. The ERTC gives eligible employers and small to medium size businesses the means to receive up to 50% of qualifying wages paid from March 13th to December 31, 2020. We help businesses apply for this valuable credit, and you can get started right now. Whether or not you qualify for the ERC depends on the time period youre applying for.
