The ERTC was introduced by the CARES Act and then amended by both the Consolidated Appropriations Act (CAA) and the American Rescue Plan Act (ARPA). Today, more employers can qualify for this refundable and advanceable credit, including those who also received a PPP loan and loan forgiveness.
Eligible businesses (rules vary at different time periods) may claim the ERTC for qualifying ages paid during March 13, 2020 through December 31, 2021. This includes a partial Q1 2020, then full quarters for the rest of 2020, and Q1, Q2 and Q3 of 2021.
The maximum credit for 2020 was $5,000 per employee. Note: If your business is willing to file amended returns for 2020, you might still have the opportunity to claim this credit. See the Tax Filings & Receiving Funds section The CAA and ARPA extended the ERTC to apply to Q1, Q2 & Q3 of 2021. Congress also expanded the amount of the credit. Businesses can claim 70% of the first $10,000 in qualified wages for each employee in Q1, Q2 & Q3 of 2021, or up to $21,000 per employee during 2021.
The ARPA extended the ERTC to tax year 2021, so wages paid from January 1, 2021 through September 30, 2021 are eligible for the credit. Ammended returns are allowed to be processed for up to 3 years.