Employee Retention Credit Blog Posts

Unfortunately, there is no way to expedite the ERC refund process. You can avoid potential delays by ensuring that your Form 941-X is filled in correctly, including ERC refund calculations. You may also reach out to reputable ERC funding companies to learn about ERC advances and funding programs, although fees will apply.

The employee retention tax credit, or ERC, is a real tax credit available to qualified small business owners. This refundable tax credit could be filed on quarterly returns in 2020 and 2021. Small business owners that didn’t know about this credit can retroactively receive a refund by filing amended tax returns.

During an IRS audit, the IRS will notify you of the specific information you need to submit. However, some common documentation that you may be required to submit include payroll records, accounting records, PPP loan forgiveness documentation, and documentation that shows your business was fully or partially shut down by the government or proof of a decline in receipts.

It is not too late the claim the ERC. If you qualify, you can file an amended quarterly return using Form 941-X to receive the tax credit in the form of a refund.

One form of relief offered to small businesses is the Employee Retention Tax Credit. First introduced in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, this tax credit could be claimed by eligible employers on quarterly tax returns. This program was expanded by the Consolidated Appropriations Act signed into law in December 2020, making the credit accessible to more employers.