What Businesses Need To Know Before Filing Their ERC In 2023

The Employee Retention Credit (ERC) has been a valuable tool for businesses struggling with the financial impact of the COVID-19 pandemic. This tax credit, which is designed to encourage businesses to keep employees on their payroll, has been extended through the end of 2022. However, there are still questions about the status of the ERC beyond that point, with many businesses wondering whether they will be able to continue to claim the credit in 2023.

There are currently no plans to extend the ERC beyond 2022. This means that businesses will only be able to claim the credit for wages paid through the end of this year.

While this news may be disappointing for businesses that have relied on the ERC to help them stay afloat during the pandemic, there are still several reasons to take advantage of the credit while it is available.

First, the ERC is currently more generous than ever before, with a maximum credit of $7,000 per employee per quarter. This means that businesses that are eligible for the credit can potentially save thousands of dollars on their payroll taxes.

Second, the rules for claiming the ERC have been relaxed in 2021 and 2022, making it easier for businesses to qualify. For example, businesses can now claim credit even if they received a Paycheck Protection Program (PPP) loan, which was not allowed in 2020.

Finally, businesses that have already claimed the ERC in 2020 or 2021 should consider reviewing their eligibility for retroactive changes. The IRS has recently issued guidance that allows businesses to claim additional ERC credits for previous quarters, potentially resulting in a significant refund.

In summary, while the future of the ERC beyond 2022 is uncertain, businesses should still take advantage of the credit while it is available. With a generous credit amount, relaxed eligibility rules, and the potential for retroactive refunds, the ERC can provide much-needed financial relief for businesses struggling with the impact of the pandemic. It is important for businesses to work with a qualified tax professional to ensure that they are claiming the credit correctly and maximizing their savings.

More FAQs here: https://chadjoneslawpc.com/employee-retention-tax-credit

At The Jones Law Firm, our team is ready to help you quickly conduct an in-depth analysis to fully understand the Employee Retention Tax Credit (ERTC) funds you might qualify for. We can guide and help you investigate your claim of eligibility, determine your potential tax credit, and then file the claim for your refundable ERTC tax credit.

If you’re unsure that you’ve claimed eligible funds or that your accountant conducted the filing correctly, then don’t hesitate to reach out. You could be leaving hundreds of thousands on the table, literally.

Please click the link below to get an evaluation on your Employee Tax Retention Credit qualifications.

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