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"Late to the ERC Party? Don't Worry! You Can Still Get It!"

The Employee Retention Credit (ERC) has been a lifeline for many businesses struggling during the pandemic. However, some business owners may be wondering if it's too late to apply for ERC or if they missed their chance.

The good news is that it's not too late to still qualify for ERC. A business has until April 15th, 2024 to claim their 2020 tax credit and has until April 15th, 2025 to claim their 2021 tax credit. Additionally, businesses that did not previously qualify for ERC may now be eligible under the expanded criteria.

To determine if your business is eligible for ERC, consider the following:

  1. Eligibility Criteria: Businesses with a decline in gross receipts or a full or partial suspension of operations due to a government order may be eligible for ERC.

  2. Timeframe: Businesses can claim the credit for wages paid between March 12, 2020, and September 30, 2021.

  3. Maximum Credit Amount: The maximum credit amount for wages paid in 2020 is $5,000 per employee, and for wages paid in 2021, it is $7,000 per employee per quarter for a total of $21,000 per employee. This means the total for 2020 and 2021 is $26,000 per employee.

  4. Application Process: Businesses can claim the credit by filing Form 941 with the IRS or by filing an amended Form 941-X.

It's important to note that the ERC program is complex and requires a thorough understanding of the eligibility criteria and application process. It's recommended that businesses work with an ERC expert to ensure they receive the maximum credit amount.

In conclusion, it's not too late to still qualify for ERC. With the program's recent extension and expanded criteria, more businesses may now be eligible for the credit. If you're unsure if your business qualifies, consider reaching out to an ERC expert to guide you through the process and maximize your credit amount.


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