When Does the Employee Retention Tax Credit End?

When Does the Employee Retention Tax Credit End?

The Employee Retention Tax Credit (ERTC) is a government-funded program that rewards businesses that kept employees on payroll during the pandemic. This tax refund has been around for a few years, but surprisingly, only a small percentage of business owners have claimed it. Important ERTC deadlines are on the horizon. We want to explain when the ERTC ends to ensure businesses don’t miss this opportunity. 

When Was the ERTC Created?

The Employee Retention Tax Credit is not a new program. Actually, the ERTC is nearly three years old now. 

Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) on March 27, 2020, amidst the Covid-19 pandemic. The CARES Act was a $2.2 trillion stimulus bill intended to ease the economic crisis during the pandemic. Included under the CARES Act was the ERTC, designed to encourage employers to keep employees. 

If you kept employees on staff despite losing revenue or being affected by governmental mandates, you may qualify for the ERTC. 

Is There Still Time to Claim the ERTC?

Yes, there is still time to apply for the ERTC, but you should act fast. Eligible businesses can retroactively apply for the ERTC for the 2020 and 2021 tax years. You have until: 

  • April 15, 2024, to claim the ERTC for the 2020 quarters 
  • April 15, 2025, to claim the ERTC for the 2021 quarters 

While there is still over a year to recover 2020 credits and over two years for 2021 credits, it is advisable that you apply now rather than later. The sooner you submit your ERTC claim, the sooner you receive your check from the IRS. You will have more time to reinvest that money in your business or however else you choose to spend your refund. 

The turnaround time for ERTC claims varies, but it can take 3-12 months, sometimes longer, to get your check. Also, the IRS has stated that it is currently working through a backlog of ERTC claims, causing a delayed processing time. 

With a limited time to apply and deadlines approaching, you should recover your tax refund before it’s too late. 

The Lake Law Firm Can Help You File Your ERTC Claim

The Lake Law Firm is assisting eligible businesses in filing for the Employee Retention Tax Credit. We make filing for the ERTC easy and safe, with minimal effort on your part. Many business owners assume they are not eligible for the ERTC or don’t know how to apply. 

With our ERTC services, you can learn if you qualify in just a short amount of time. Don’t let these ERTC deadlines pass you by. Contact The Lake Law Firm today to start your ERTC claim and recover the credits the government owes you.