The Employee Retention Tax Credit Can Be Filed in 2022 for 2021 & 2020
December 31, 2022
The COVID-19 pandemic disrupted companies all around the world. In March of 2022, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. A comprehensive federal economic relief package, the CARES Act included the initial authorization of the Paycheck Protection Program (PPP). The CARES Act also created a lesser-known financial option: the Employee Retention Credit (ERC).
The ERC is a cash back tax credit, available to qualified businesses, that you receive in 6 checks—including many companies that received funds through the PPP. The ERC tax credit offers up to $26,000 per worker for qualifying businesses. It is not too late to file for the ERC credit for 2021 and/or 2020. In this article, you will find an overview of the most important things to know about filing for the Employee Retention Credit (ERC) for 2020 and/or 2021 in 2022.
Employee Retention Credit: Explained
As a starting point, it is important to understand what the employee retention tax credit is and how this employee tax credit works. As explained by the IRS Internal Revenue Service and the United States Department of Treasury, the ERC is a specialized, refundable tax credit in the form of a check that rewards businesses and organizations that kept employees on their payroll through the COVID-19 pandemic, despite being shut down or experiencing a significant loss of revenue.
There are many ways to qualify for this credit. Many companies think that they have to have revenue loss in order to qualify for ERC, which is not true. Sunrise Business Solutions | ERC Guaranteed will not only guarantee you qualify to ERC 100% risk free , but our experienced accountants will also help you file for all six quarters. Get in touch with us now, and get the maximum credit you can get.
The standards are different by year. The loss of revenue for 2020 must have been 50 percent lower than the same quarter in 2019. On the other hand, the loss of revenue for 2021 must have only been 20 percent lower than the same quarter in 2019 to qualify. An employer can file for the ERC in 2020 and/or 2021 regardless of whether or not they received a forgivable loan through the Payment Protection Program.
Know Your Rights: It is Not Too Late to File for the ERC
The Employee Retention Credit is effectively a government grant to support the businesses that kept their staff on even though they suffered COVID-19 related financial harm. Some businesses can receive a significant amount of money by claiming this tax credit. However, many business owners are simply not aware that this is an option.
One survey from the National Federation of Independent Business (NFIB) found that just 8 percent of small businesses used the program in 2020. This is despite the fact that many more businesses meet the qualification standards. It is not too late: Under IRS regulations, businesses can still claim the ERC tax credit for 2020 and the ERC tax credit for 2021 in 2022.
While the ERC qualifying period ended on September 30th, 2021 (end of third quarter of 2021), the law includes a three-year look back provision to apply retroactively. As such, all businesses and organizations have the chance to claim the ERC through an amended Form 941x for three years. In 2022, you can still claim the ERC for all six quarters (2020 and 2021).
How Our Employee Retention Credit Specialists Can Help
The ERC application process can feel daunting. Many small and mid-sized business owners are not sure if they are qualified or where to start. At Sunrise Business Solutions | ERC Guaranteed, our ERC specialists are here to help you secure the maximum available ERC—Guaranteed. We help our clients with a wide range of issues, including:
- Employee retention credit 2020;
- Employee retention credit 2021; and
- Employee retention credit 2022.
A business may be able to obtain up to six quarters worth of ERC credits per employee. We will conduct a comprehensive assessment of your case and help you ensure that your company claims all employee retention tax credits available under the law. Whether you need help with ERC 2020, ERC 2021, or ERC 2022, our specialists are here as a resource.
Speak to an ERC Specialist Today
At Sunrise Business Solutions | ERC Guaranteed, we are standing by, ready to help you maximize your credit. Our team specializes in just one thing—the employee retention credit (ERC). You do not have to navigate the process alone. If you have any specific questions or concerns about the ERC, we are here to help. Call us at 1-888-210-8870 to find out more about how we can help.