Employee Retention Credit: ERTC Application Deadline 2024

Written By Colin Kuehn  |  Business 

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ERC Application 

Applying for the Employee Retention Credit is quick and easy process, and you can find out how much your business may be eligible for in just a few short minutes. Get started below:

Does Your Business Qualify?

  • Find out in just a few minutes
  • Application is quick and easy
  • Companies can still get funds in 2023
  • Businesses that took PPP loan still eligible for ERC
a sticky note next to a clock that says "tax time"

What is the ERC?

If you are a small business owner and you are thinking about getting a loan to expand your company, you may want to look into the Employee Retention Credit (ERC). This is a tax credit that is available to businesses that hire new employees. You can apply for it, but you need to know how to do it. There are several steps you need to take to apply.

ERC APPLICATION

Employee Retention Credit is a government-sponsored program to encourage employers to keep employees in the event of an economic crisis. It is not a loan, but rather a tax credit. A business may claim the credit if it meets the eligibility requirements.

The credit is a percentage of the qualified wages that are paid to an employee. This percentage is capped at $10,000 per quarter, per employee.

The Employee Retention Tax Credit is designed to help businesses that experienced a substantial decline in gross receipts during the calendar quarter. In addition, businesses can claim the credit for a significant reduction in their payroll tax payments.

However, to qualify for the credit, employers must suspend more than a nominal portion of their operations. Business owners should consult with a certified public accountant to determine if they are eligible for the program.

An eligible business can claim up to $10,000 in qualifying wages for the first three quarters of 2021. They can also apply for an advance of credit from the IRS.

However, the Employee Retention Tax Credit is not available to small businesses that have a business loan. Also, it is not available to employees of state or local governments, or employees of any business that receives paid sick leave under the Families First Coronavirus Response Act.

Application Deadline

It is a refundable tax credit that can be used to help pay payroll taxes. To take advantage of the Employee Retention Tax Credit, you must fill out Form 941-X. You must also report qualified wages. The deadline to apply for the credit  was  originally October 1, 2021, but that deadline has been extended, and businesses are still eligible to apply in 2023 -

head here to start the application process.

Summary

Employee Retention Credit is a tax incentive program which is designed to help companies in need. Generally, the credit is based on the total qualifying wages paid to eligible employees. However, the credit is also available to businesses that have suspended more than a nominal portion of their business operations. The program is intended to reward employees for their perseverance during tough times.

The IRS has a few different ways to calculate the credit, but generally it includes both the employer and employee pretax portion. The amount of the credit is calculated on a quarterly basis and is limited to $10,000 per quarter. This means that an eligible business may receive a grant of up to $26,000 per employee. In addition, the number of full-time employees is used as a key factor when calculating the credit. A full-time employee is an employee who works at least 30 hours per week and at least 130 hours per month.

Find out if you qualify below:

Last Updated: December 31, 2023