What is the Employee Retention Credit (ERC)?

The Employee Retention Credit (ERC) is a refundable federal payroll tax credit designed to support businesses who retained their employees through COVID-19. This valuable credit can provide up to $26,000 per employee across the 2020 and 2021 calendar years.

Even though the tax credit expired in September 2021, qualified businesses, nonprofits, and employers can still file paperwork and retroactively receive claims for the Employee Retention Credit. Employers can amend previously submitted forms by filing and submitting Form 941-X so they can retroactively claim the Employee Retention Credit. The deadline for filing a claim relating to 2020 is April 15, 2024.  For 2021 claims, the deadline is April 15, 2025.


Who is Eligible?

You may qualify for ERC if your business or nonprofit experienced a significant decline in gross receipts during 2020 or a decline in gross receipts during the first three quarters of 2021.  A business may also qualify if it was under government restrictions related to Covid-19 in 2020 or 2021.


Why Choose KatzAbosch?

Navigating the ERC process can be intricate and time-consuming, as it necessitates a deep understanding of the ERC calculation guidelines. Incorrect or incomplete claims could lead to penalties, interest, and the obligation to repay the ERC funds received. To avert these risks, it’s crucial to start the process with a proper assessment of eligibility, followed by precise calculations of the credits, and finally, the filing of proper claims.

At KatzAbosch, we have a dedicated ERC team that specializes in helping organizations determine their eligibility for the ERC. We also excel in preparing the associated calculations and tax forms, ensuring you can take full advantage of this valuable credit.


How KatzAbosch Can Help

Benefit from KatzAbosch’s industry-leading expertise in ERC eligibility, a credit we’ve excelled in since its inception in 2020. With our assistance, clients have successfully claimed tens of millions of dollars in ERC refunds. Our ERC professionals stay up to date with the latest guidance to secure the best long-term benefits for your business. Ready to optimize your tax and business strategy? Reach out to your KatzAbosch representative or contact us today to get started.


Helpful Article Resources

Related Resources