The Ultimate Guide to the Employee Retention Tax Credit (ERTC) - Everything You Need to Know

TLDRThe Employee Retention Tax Credit (ERTC) is a tax credit that gives business owners a percentage of the wages they paid their employees during COVID times. It can be claimed for specific quarters in 2020 and 2021, with different rules for large and small businesses. The credit is filed on payroll tax forms and can be amended if you qualify. It's important to understand the eligibility criteria and aggregation rules for multiple businesses.

Key insights

💰The ERTC gives business owners a percentage of the wages they paid their employees during COVID times.

📅The credit can be claimed for specific quarters in 2020 and 2021, with different rules for large and small businesses.

📝The credit is filed on payroll tax forms and can be amended if you qualify.

⚙️Understanding the eligibility criteria and aggregation rules for multiple businesses is crucial.

💼Sole proprietors, LLCs, corporations, partnerships, and nonprofits can claim the ERTC.

Q&A

Can I still apply for the ERTC in 2022, 2023, or 2024?

—No, the ERTC can only be claimed for specific quarters in 2020 and 2021. The credit is not applicable for future years.

Do I have to have five or more employees to claim the ERTC?

—No, there is no minimum employee requirement to qualify for the ERTC. Businesses of all sizes can claim the credit.

Can the owner claim the ERTC?

—Owners of businesses can claim the ERTC if they are paid as W-2 employees and meet the eligibility criteria.

How long does it take to get the ERTC refund?

—It typically takes around nine months for amended payroll tax forms to be processed and for businesses to receive the ERTC refund.

How do I receive the ERTC?

—The ERTC is claimed by filing payroll tax forms (Form 941) and taking a credit on the taxes you owe.

Timestamped Summary

00:00The Employee Retention Tax Credit (ERTC) is a tax credit that gives business owners a percentage of the wages they paid their employees during COVID times.

19:01The ERTC can be claimed for specific quarters in 2020 and 2021, with different rules for large and small businesses.

04:12:22Understanding the eligibility criteria and aggregation rules for multiple businesses is crucial for claiming the ERTC.

09:19:46The ERTC can only be claimed for specific quarters in 2020 and 2021. It is not applicable for future years.

13:56:33There is no minimum employee requirement to qualify for the ERTC. Businesses of all sizes can claim the credit.

16:26:46Owners of businesses can claim the ERTC if they are paid as W-2 employees and meet the eligibility criteria.

18:59:36It typically takes around nine months for amended payroll tax forms to be processed and for businesses to receive the ERTC refund.

22:05:28The ERTC is claimed by filing payroll tax forms (Form 941) and taking a credit on the taxes you owe.

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