The Employee Retention Credit Deadlines for 2023 are Approaching Quickly!
Although the tax credit was set to expire in September 2021, eligible employers, businesses, and organizations can still submit paperwork and receive retroactive payments for the Employee Retention Credit in 2023. However, this can only be done up to three years after they initially filed their payroll tax returns. To do this, business owners must file IRS Form 941-X, which is used to make corrections to their initially filed Form 941s.
As stated by the IRS, “For purposes of the period of limitations, Forms 941 for a calendar year are considered filed on April 15 of the succeeding year if filed before that date.” As a result, the Internal Revenue Service must receive 941-Xs for the 2020 eligible quarters by April 15, 2024. Similar to this, the ERC deadline for submitting a claim for ERC funds for 2021 eligible quarters is April 15, 2025.
Employers who are eligible must first ascertain their status and make sure they comply with the IRS requirements. Their paperwork won’t be accepted if it doesn’t. You can proceed and actually file for the employee retention credit once you are certain that you are qualified for it.
Initially, employers could claim the employee retention credit whenever they submitted Form 941 with their quarterly tax returns to the government. However, on September 30, 2021, the Employee Retention Credit’s deadline expired. Thankfully, employers may still submit an ERC application in 2023!
The Employee Retention Credit may be retroactively claimed by employers by filing and submitting Form 941-X to make changes to previously submitted forms.
Important Deadlines to File for the ERC in 2023
The deadline for submitting a 941-X for eligible employers who wish to claim ERC funds for 2020’s Q2, Q3, or Q4 is April 15, 2024.
In order to claim ERC funds for Q1, Q2, or Q3 of 2021, employers who qualify must submit their 941-X by April 15, 2025.
In conclusion, the Employee Retention Credit can significantly ease the COVID-19 pandemic for small businesses. Small business owners can make sure they can claim the credit and get the funding they need by being aware of the 2023 deadlines, eligibility requirements, and how to calculate and file for the credit. However, obtaining the credit can be a difficult and confusing process.
Please do not hesitate to contact Funding Lobby if you require any assistance in comprehending the Employee Retention Credit or how to apply for it in 2023. In order to make sure you correctly claim the credit before the deadline, we are available to respond to your inquiries and offer guidance. To arrange a meeting with one of our experts, get in touch with us right now.