A chamber of Congress recently voted to pass legislation that ends the Employee Retention Credit (ERC) program on 1/31/24. Since we’re past 1/31 and into February, can you still file for ERC?
When is the ERC filing deadline?
The ERC program guidelines indicate the deadlines to file for ERC are as follows:
2020 credits must be filed by April 15, 2024
2021 credits must be filed by April 15, 2025
However, the legislation proposes ending ERC far in advance of these deadlines.
Why does the new legislation propose ending ERC?
The new legislation introduces new tax credits, expands existing personal tax credits, and updates business tax credits. To fund these initiatives, the bill accelerates the ERC filing deadline to January 31, 2024. The budget allocated towards ERC filings through 2025 will then be reallocated to the proposed legislation’s programs.
What's the current status of the legislation?
The House approved the legislation on January 31, 2024, and it now awaits review by the Senate. However, the Senate is currently in recess until February 26th, so the earliest legislation can progress or be vetoed is the last week of February. If the Senate approves the bill, it will be sent to the President for final consideration.
What does this mean now that we're in Feburary?
Given that the legislation cannot be finalized until the end of February at the earliest, they are unlikely to pass the bill in its current form with a 1/31/24 ERC filing deadline. If Congress passes the bill, they will likely update the ERC deadline to coincide with the approval date, or they may allow a short grace period to file any remaining ERC claims after finalizing the legislation.
What should I do now? Can I still file for ERC?
Your next steps depend upon your ERC filing status.
If…
You’re in the process of filing for ERC, continue to file and be prompt with any follow up. ERC provides meaningful capital to eligible businesses. If you’re filing with a group like us at NEWITY, you’re not charged a fee until you receive your ERC claim.
You’ve already started the process with our team at NEWITY, please remain responsive to your ERC representative.
You’ve paused your application with us and would like to resume it, please email your ERC representative. You can find their email by searching for “@newitymarket.com”.
If you haven’t filed and believe you may be eligible for ERC, start an application now. Credible ERC processors will thoroughly review your eligibility for the program. this review can take several days, depending on your business’ operations and performance in 2020 and 2021.
Start your ERC application by creating a NEWITY account and clicking ‘Start Application’ on the ERC tile.
If you already filed for ERC, the IRS’ moratorium continues to delay the issuance of refund checks. If you need faster funding, consider an ERC Advance program.
How can I stay up to date if the bill passes?
NEWITY will continue to inform its members of the bill’s progress via email and in our Insights corner.
We are no longer accepting ERC applications. We are happy to help you get access to affordable funding through an SBA 7(a) loan.
