If you're a business owner, then you know that every penny counts. So when the government offers a tax break like the Employee Retention Tax Credit (ERTC), it's important to take advantage of it! In this blog post, we'll explain what the ERTC is and how you can claim retroactive reimbursement for your employees. At Benchmark Human Capital, we adjust our methods in response to data in order to provide the most cost-effective employee management solutions. Continue reading to find out how to apply for a retroactive ETRC.
How Do I Claim Retroactive ERTC?
How Do I Claim Retroactive ERTC?
Who Can Claim Retroactively?
Eligible employers and businesses can file a claim for a retroactive ERTC refund on qualified wages that were paid previously in past calendar quarters. This is done by filing Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund, with the help of the experts at Benchmark Human Capital. For those employers who didn’t claim the ERTC on their IRS forms that were originally filed, you may still retroactively claim the credit.
Employee Retention Tax Credit Wages
The same wages used to calculate the ERTC can't be used to calculate other credits, such as Work Opportunity Tax Credit, Employer-Paid Family, and Medical Leave Credit (IRC 45S) along with other disaster retention credits such as R&D credit. Additionally, qualified wages don't include wages paid from certain grants under the Small Business Association or from the new restaurant revitalization grant. Learn how to navigate the details and file your retroactive ETRC with Benchmark Human Capital.
How Long Do You Have to Claim?
For those employers and businesses eligible, you can retroactively claim an Employee Retention Tax Credit refund on qualified wages that were paid in previous quarters within the ETRC timeline. To do so, the Benchmark Human Capital team can claim retroactive ERTC for you until three years after the date of filing the original return, which is two years longer than other tax credits! We work with you to file Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund, to make up for that lost opportunity.
How to Claim Retroactive ERTC
Finally, the total amount of compensation for services supplied must be reported on Form 941. Employers can claim the ERTC by calculating the ERTC amount for a pay period and reducing their required payroll deposit by that amount. Filing Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund. Benchmark Human Capital can help you get started on your Employee Retention Tax Credit refund today. We're here to answer any questions, address any concerns, or guide you through the entire procedure if needed!
Whether you have a full-time HR staff member or not, Benchmark has got you covered! Contact Benchmark Human Capital today!