How Businesses Can Claim the ERC in 2023

January 11, 2023

It’s not too late for some business owners to claim the Employee Retention Credit, also known as the ERTC or ERC, in 2023. There is some confusing information out there about deadlines and eligibility and as a small business owner, you might believe you missed your chance to get this lucrative credit for your business. Fortunately, that’s not the case. 

Claiming the ERC in 2023 is possible for some businesses. It all comes down to your quarterly payroll tax filings, and whether you can make amendments to your past federal tax returns.

The Employee Retention Credit is a refundable tax credit meant to assist businesses that maintained staff during the height of the COVID-19 pandemic. Businesses can claim the credit for qualified wages paid to their employees. 

If your business experienced significant setbacks during certain periods of 2020 and 2021, but you continued to keep W2 employees on staff, you may qualify for this credit and could ultimately receive up to $26,000 per employee.

The ERC was established by the CARES Act (Coronavirus Aid, Relief, and Economic Security Act passed by Congress in 2020) and expanded by the Relief Act, American Rescue Plan Act, and Infrastructure Investment and Jobs Act. 

If, for whatever reason, you did not claim the credit for the years 2020 and 2021 previously, it might be possible for you to do so for your business now. 

At this time, there are two deadlines for claiming the ERC in 2023 — for all quarters in 2020, the deadline to apply for the ERC is April 15, 2024. For all quarters in 2021, the deadline is April 15, 2025.

But you may not have time as a business owner to go back in your tax returns and see if you qualify and should do an amendment. That’s where a team like the one at Phillips Law Group comes in.

Our team can potentially help you earn the ERC in 2023 and reward you for keeping people on staff during a deeply unstable financial period impacted by COVID-19. The Phillips team can take on the application process for you while you focus on your business, and you can be sure we will do all we can to make an eligible application a successful one. 

Contact us today to see how we can help you and your business retroactively claim the ERC in 2023 while there’s still time for us to tackle the process together.