What you need to know following Tax Day 2024.
The Senate continues to debate the bill that could alter ERC program filing deadlines. The existing deadline for ERC claims on wages paid in 2020, of April 15, 2024, has now passed.
What does this mean?
While businesses can no longer file ERC claims for wages paid in 2020, under the existing guidance, they can continue to file claims for wages paid in 2021 until April 15, 2025.
What happens if the Senate and President Pass the bill to end ERC?
If the Senate and President pass the bill that would end the ERC program early, the date identified in the final bill would supersede existing program deadlines. The bill currently cites a January 31, 2024 deadline, which corresponds with the date the House voted to approve the bill. However, the Senate has yet to address the bill and we are now well beyond the January 31 date included therein. If passed, it is unclear whether the date would be altered to reflect the passage of time between the bill introduction date and the bill passage date.
While the outcome is uncertain, there may be a brief grace period to allow business owners to continue to file for ERC after the bill is signed into law. Alternatively, it is possible the bill would retroactively end ERC, voiding any claims filed after January 31.
Can I still file for 2021 ERC?
Yes, groups like NEWITY continue to operate based on the existing program guidelines until the bill passes. These guidelines allow businesses to submit ERC claims for eligible wages paid in 2021 until April 15, 2025.
How much ERC can I receive now that I can only file for 2021?
Businesses may receive up to $21,000 per employee through 2021 ERC claims. The 2022 ERC claim maximum of $26,000 per employee only slightly reduces from the 2020 and 2021 limits.
What should I do now?
Evaluate whether you qualify for ERC for any wages paid in 2021. Submit NEWITY’s brief ERC application by creating or logging into your NEWITY account. The NEWITY ERC team continues to focus on evaluating eligibility and calculating ERC claims precisely.
Given the complexity of the credit calculations and the potential pending legislation, the NEWITY team encourages you to file as soon as possible.
