Now that President Biden has signed the Infrastructure Investment and Jobs Act (IIJA) into law, the employee retention credit (ERC) will end early, making wages paid after September 30, 2021, ineligible for the credit, except for wages paid by an eligible recovery startup business.
The program originally was scheduled to run through the fourth quarter of 2021. That means qualified businesses will only be able to claim a maximum of $26,000 per employee in total for 2020 and the first, second and third quarters of 2021. Previous legislation, which included the fourth quarter of 2021, afforded up to $33,000.
There’s still time to file for third-quarter ERC refunds, and businesses may still apply for 2020 and 2021 credits on amended payroll tax returns for the next three years, as long as the statute of limitations remains open. Note that there is a backlog for amended claims from 2020, and future legislative changes could impact ERC payouts even further. Click here to start the process.
While the Build Back Better legislation may bring additional changes to the program, passage of the IIJA makes applying for the credit today more important than ever to ensure you get the relief your business needs.
The ERC is a fully refundable payroll tax credit that has provided many businesses with the financial relief they need as they recover from the COVID-19 pandemic. Many companies do not think they qualify and have found out they do.
Click here to learn how these four organizations that were unfamiliar with the ERC claimed nearly $7 million in relief.
The Janover team has helped businesses claim more than $50 million in ERC funds to date. Our ERC team can help you assess your eligibility, learn more about the credit, and ensure you receive each and every dollar of relief you are eligible for. Click here to start the process.