Am I Eligible For ERTC? How To Find Out & File Before The Deadline
The ERTC (Employee Retention Tax Credit) program is coming to a close, and employers who want to receive their tax credits need to file ASAP to be eligible.
With all the changes that keep happening, it’s hard to keep track of who’s eligible and who isn’t, and just what the rules are.
When the ERTC was first announced, it was only supposed to run until the end of 2020, and employers who took loans under the PPP (Payroll Protection Program) were not eligible for ERTC.
As the program was originally going to be so short, most employers chose to use the PPP program instead of the ERTC, but everything changed in 2021.
The ERTC program was extended, first until early 2021, and then until near the end of 2021 — but that’s not the biggest change.
The most important change that happened was an amendment to the eligibility restrictions.
Employers who enrolled in the PPP program and were previously not eligible for the ERTC can now join both programs, and get tax credits for employees they kept on the payroll all through 2020 and most of 2021.
The short answer is that you should consult an expert.
For a longer answer, if your business was operating in 2020 and 2021, with employees on your payroll, and you suffered financial losses due to the pandemic, then you most likely qualify.
It’s a little more complicated than that, and you can find the full details from official government websites.
The easiest way to determine if you’re eligible, and for how much, is to contact an ERTC specialist — they can quickly check your eligibility and help you file before the deadline.
How Much Can You Claim?
The first thing to determine is whether you’re considered to be a “small employer,” or a “large employer,” because that will determine which employees are eligible for the program.
Due to changes in the regulations partway through the program, this changes from 2020 to 2021.
In 2020 if your company employed less than 100 individuals, it was considered a “small employer.”
That changed in 2021, and companies that had less than 500 employees on the payroll are considered “small employers.”
Once you’ve determined whether your company is a small or large employer, the next step is to see the eligibility rules for each.
Those are once again available from your local government websites, or by contacting an ERTC claim specialist who can walk you through the process.
If your business qualified for a PPP loan at any time during the pandemic, chances are that it also qualifies for ERTC — as long as you file before the deadline.
Don’t wait until it’s too late, claim the tax credits you deserve while you still can.