Employee Retention Credit Overview
The IRS has announced a moratorium on the processing of all new Employee Retention Credit claims until at least 2024. Businesses still have until 2024 to make an application or enter a claim for 2020 and 2021. It is important to contact a lender such as Florida Tribeca Group as soon as possible. To apply, businesses must evaluate their eligibility, calculate qualified wages, and file the eligible claim application via Form 941-X with the IRS.
Retroactive Claiming and Deadlines
The IRS allows businesses to claim the employee retention tax credit retroactively until 2024. This refundable tax credit encourages businesses impacted by COVID-19 to retain employees. Eligible employers can claim up to $26,000 per employee. To qualify, businesses must evaluate eligibility, calculate qualified wages correctly, and file Form 941-X. Lenders like Florida Tribeca Group help businesses claim this tax credit.
Filing Procedures and Assistance
The moratorium delays new claims until 2024. However, claims filed before September 14, 2023 undergo extra review before payout. Businesses should use this time to ensure accuracy with a tax professional. Filing an amended return helps avoid penalties for incorrect claims made in good faith.
Understanding the intricacies of this credit, including eligibility criteria, filing requirements, and deadlines, is crucial for businesses seeking to optimize their benefits. The confusion around the deadline is linked to the September 2021 retroactive end date, as well as the typical three-year amendment timeline. The Infrastructure Act of November 2022 provided a three-year window to claim ERC from the tax deadline of the year businesses qualify. It requires careful planning to capitalize on all potential savings.