The Employee Retention Tax Credit (ERTC) has helped many businesses retain employees and recover from the effects of the pandemic. While the Infrastructure Investment and Jobs Act retroactively ended the ERTC for most businesses, eligible companies have three years after the program ends to look back at wages paid and claim the credit. Below is a flowchart to help determine if you can still take advantage of the ERTC.
Reminders about the ERTC
- For the 2021 ERTC, qualified wages are those paid from January 1, 2021 to September 30, 2021. Qualified wages are limited to $10,000 per employee per quarter for a maximum 70% credit of $7,000 per employee per quarter.
- The recovery startup business ERTC is available only in 3Q & 4Q 2021 up to the $50,000 credit maximum each quarter.
- A recovery startup business is any employer that:
- Began carrying on a trade or business after 2/15/2020, and
- Had average annual gross receipts of less than $1 million.
Due to the IRS ERTC moratorium, Anders will no longer be accepting new ERTC clients until the IRS issues additional guidance related to this moratorium and the options available to affected businesses. Learn more about the IRS’s ERTC moratorium.All Insights