Employers can still apply for the ERTC retroactively by filing Form 941-X, Employer Adjusted Federal Tax Return or Request for Refund, for each quarter in which they have paid qualifying wages. Employers can file Form 941-X up to three years after the original payroll tax due date, which is normally April 15. Eligible employers and businesses can file a request for retroactive reimbursement from the ERTC on qualifying wages that were previously paid in the last calendar quarters. This is done by filing Form 941-X, Employer's Adjusted Quarterly Federal Tax Return, or request for reimbursement, with the help of the experts at Benchmark Human Capital. For those employers who didn't request the ERTC on their originally filed IRS forms, they can still apply for the credit retroactively.
Many employers have already requested millions of dollars in tax credits through the Employee Retention Tax Credit (ERTC). The employee retention credit is a refundable credit that employers can apply for in certain payroll taxes. Eligible employers who apply for refundable tax credits under the FFCRA or ARPA must separately declare qualifying wages for family leave and sick leave to their employees. Therefore, if you think you qualify and want to apply for this tax credit, simply file the amended payroll tax returns using Form 941X.
For those employers and companies that qualify, they can retroactively request a refund of the employee retention tax credit on qualified wages that were paid in previous quarters within the ETRC deadline. In addition to tax credits for employers, according to the CAA, a person who is self-employed can apply for refundable credits equivalent to sick and family leave if the person was unable to work during the first quarter due to certain circumstances related to COVID. An additional interaction between the ERC request and the salaries used for the forgiveness of PPP loans will have to be taken into account. An eligible employer that has received a PPP loan and has not applied for the ERC can file a Form 941-X, an adjusted quarterly federal tax return from the employer for the relevant calendar quarters in which the employer paid qualified wages, but only for qualified wages for which an election was not considered.