ERC Direct is a specialized company dedicated exclusively to understanding and maximizing the CARES Act's employee retention credit (ERC) for small businesses. Eligible businesses file the application by filing the 941-X, amended quarterly payroll tax return, with the IRS. This form must be submitted within three years of the initial filing of the return, so that companies can have until 2024 to participate in the program. Although one of the objectives of the ERC was to provide funding to compensate for employee expenses (and, therefore, maintain employment), the inevitable staff deficit means that companies will not receive payments until long after the crisis has passed, and that there will be a further delay in ERC emails.
Instead, the employer must reduce wage deductions on their income tax return for the tax year in which they are an eligible employer for the purposes of the ERC. The challenge is that the ERC credit is included in your payroll returns and not through your company's income tax returns, which is what most CPAs manage. If you have any questions about the ERC and whether your company meets the requirements, contact your CPA or tax advisor. ERC Today recognizes how desperately your company needs this credit to keep everything up and running and your staff on the payroll.
One such program is the Employee Retention Credit or ERC, which is a generous stimulus program designed to strengthen companies that were able to retain their employees during this difficult time. ERC Today is here to help with any questions or concerns you have about the employee retention credit. From now on, the only way to apply for the ERC is to file an amended Form 941X (Quarterly Federal Payroll Tax Return) for the quarters in which the company was an eligible employer. Eligible employers can still apply for the ERC for previous quarters by filing the appropriate adjusted employment tax return within the deadline set out in the instructions on the corresponding form.
ERC funds that are not used for payroll taxes due are considered an “excessive deposit” of taxes that will be requested from the IRS as a refund check. For more information on the employee retention credit, visit Cherry Bekaert's ERC Guidance Center or contact Martin Karamon. Disaster loan counselors can help your business with the complex and confusing employee retention credit (ERC) and employee retention tax credit (ERTC) program. The federal government established the Employee Retention Credit (ERC) to provide a refundable employment tax credit to help businesses cover the cost of keeping staff employed.