It’s great news for businesses. The Employee Retention Credit (ERC) is a fully refundable payroll tax credit — essentially a reimbursement for a portion of payroll taxes.

Unlike a deductible, which decreases a business’ taxable income, a credit reduces the amount of total tax owed to the IRS. If qualified, you may receive total tax credits from the IRS for up to $26,000 per employee. What’s more, it’s also possible to receive a cash payment from the IRS in surplus of what you paid in payroll taxes.

Your ERC application is an opportunity to take advantage of every dollar you paid in payroll in 2020 and 2021—and a big shout-out to you for employing people during the pandemic!

ERC applications were first accepted in early March 2020 with the CARES act. At the time, businesses couldn’t elect to participate in both the PPP loan and ERC program. As of March 2021, it’s now possible to take advantage of both, if managed correctly.

Good news is, you still have time! To claim your ERC money, because it’s a payroll tax credit, you must amend your previously filed 941’s. Generally, you can amend a 941 form for up to three years from the time you originally filed.

It’s best not to wait—or guess. Start your ERC application with the experts now.