Phoenix, Arizona, USA, July 4, 2023 – The Employee Retention Credit (ERC), a provision of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides essential financial support to businesses hit hard by the COVID-19 pandemic. The tax year 2023 is vital as several critical deadlines for claiming the ERC are fast approaching.
Stenson Tamaddon urges businesses to understand the specifics around claiming the Employee Retention Credit before the deadlines to take advantage of this beneficial economic relief program. This press release provides an overview of the ERC, the approaching deadlines, and the process of claiming the credit correctly.
The ERC, introduced under the $2.2 trillion CARES Act of March 2020, is a refundable payroll tax credit, not a loan, and therefore, does not need to be paid back. It was created to support employers, particularly small businesses, in keeping their staff employed and wages paid amidst the challenging pandemic situation.
Despite the fact that the ERC’s deadline for filing and receiving retroactive claims was September 2021, eligible firms, companies, and employers still have until September 2023 to do so. This can be done up to three years after the original filing of their payroll tax returns, via IRS Form 941-X. For 2020 qualifying quarters, Form 941 must be filed with the IRS by April 15, 2024; for 2021 qualifying quarters, the deadline is April 15, 2025.
Both a significant decline in gross receipts or total revenue and a complete or partial suspension of activities owing to government orders are required for an organization to be eligible for the ERC. Paycheck Protection Program (PPP) loan recipients can still apply for ERC funding, contrary to common belief.
The ERC is determined by comparing a company’s quarterly gross receipts in 2020 or 2021 to those in the same period in 2019. The ERC may be available to a company if its gross receipts for any calendar quarter in 2020 were less than 50 percent and for any calendar quarter in 2021, they were less than 80 percent compared to the corresponding quarter in 2019.
Once eligibility is determined, employers can file for the ERC by amending previously submitted forms using Form 941-X. Tracking the status of the ERC filing may be challenging due to the high volume of inquiries to the IRS. As part of the white-glove service at Stenson Tamaddon, we offer assistance by reaching out to the IRS on behalf of our clients, saving them precious time.
We acknowledge that the process of claiming the ERC can be complex and overwhelming. Therefore, Stenson Tamaddon’s team of experienced tax specialists is ready to provide guidance to ensure your credit claim is made correctly before the deadline.
We urge all qualifying businesses to act promptly. The ERC is an essential financial lifeline that can significantly alleviate the economic strain caused by the ongoing pandemic.
About Stenson Tamaddon:
Stenson Tamaddon is a leading financial service provider, offering comprehensive tax, accounting, and consulting services. Our firm is committed to meeting the full spectrum of our client’s financial and business advisory needs.
Company: Stenson Tamaddon
Name: Ryan Louis
Phone: +1 888-375-1000
Address: Phoenix, Arizona, USA