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Potential Change to the ERC Deadline Date

Under current law, April 15, 2024, is the deadline to file ERC claims for the 2020 tax year and April 15, 2025 is the deadline to file claims for the 2021 tax year. Also, currently, the IRS has three years to audit most ERC claims, but it has five years to audit payroll returns with ERCs filed for the last two quarters of 2021.

The Tax Relief for American Families and Workers Act of 2024, was passed by the House of Representatives on January 31st, 2024. As drafted, H.R. 7024 would not allow new Employee Retention Credit (ERC) claims to be submitted after January 31, 2024, and all improper claims would be subject to longer potential enforcement periods and higher penalties.

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Employee Retention Credit (ERC) Tax Refunds

SBAM’s Vetted & Approved Partners Can Determine Your Eligibility

The Employee Retention Credit is a refundable tax credit designed to offer financial relief to businesses that have experienced economic hardship due to the COVID-19 pandemic. Eligible businesses may receive up to $26,000 per employee!

Approved under the CARES Act, the ERC was designed to help employers keep their employees on the payroll and off of unemployment compensation.

In March 2021, updated IRS regulations made this relief more accessible. In short, thousands of businesses who once picked between the Paycheck Protection Program (PPP) and ERC can now possibly use both, by amending their Quarterly Form(s) 941.

SBAM conducted an extensive search process and selected two vendors, Occams Advisory and CLRA Group, that have been researched and vetted by your fellow small business owners as trusted sources to assist members in applying for and receiving the Employee Retention Credit.