ERTC FAQs — Top 6 Questions About Employee Retention Tax Credits Answered
The Employee Retention Tax Credit (ERTC) program is over, but many employers still have questions.
Since it’s time to make your claim, there’s no better time to have them answered.
For questions about retroactive claims, eligibility, PPP loans, repayment, maximum claim amounts, or the easiest way to file — read on.
If your question isn’t answered here, don’t worry, there are ERTC specialists waiting to give you answers, and help you file your claims.
Is It Too Late To Claim Tax Credits For 2020?
If you haven’t filed for 2020 yet, then you’re late, but at least it will be easy to make your ERTC claim.
If you have already filed, don’t worry, it’s still easy — you just need to fill out a 941-X form to make an amendment to your file, or ask an ERTC specialist and they can help you with the paperwork.
How Do You Know If You’re Eligible?
There are two ways you can be eligible — the first is if your business was suspended or closed due to an order from the government, such as a temporary lockdown.
The second is through showing a loss of revenue during the pandemic.
If you think you might be eligible, don’t wait too long, fill out a quick form with some professional ERTC specialist accountants who can pre-qualify you for your rebate.
Can You Still Get ERTC If You Received A PPP loan?
When the CARES Act was passed, creating the ERTC and Paycheck Protection Program (PPP) you could only enroll in one program — and most employers chose the PPP.
In 2021, the CARES Act was amended by the Consolidated Appropriations Act, to allow you to access both programs, so even if you already received a PPP loan, you may still be eligible.
Does ERTC Need To Be Repaid?
No. Unlike the PPP, ERTC is a credit, and not a loan in any way.
You don’t need to pay it back, ever.
How Much Can You Claim?
While the exact amount will depend on your business — it’s a significant amount.
For wages paid in 2020, you can claim up to $5,000 per employee, per quarter.
In 2021, that was increased to a maximum of $7,000 per employee, per quarter.
What’s The Easiest Way To Claim Your Tax Credits?
While you can do the paperwork yourself, or have your company accountant take care of it, because of all the changes in the ERTC program since it began, it’s a good idea to contact a specialist.
There are professional accountants that specialize in ERTC claims that can make sure you get the maximum possible tax credits, and you only have to fill out a very short form and provide a few documents.
After that, you can sit back and wait for your check in the mail!