Skip to content

Employee Retention Credits: They Aren’t Dead Yet!

Feb 24, 2023

It’s become commonplace for managers to receive unsolicited phone calls from individuals advising of the enormous payout that awaits via Employee Retentions Credit (ERC). These same managers can hardly open their email or social media accounts without being inundated with ads for ERC. Clients receive these same calls and emails, meaning if you aren’t talking to them about ERC, rest assured that someone else is.

What Is an Employee Retention Credit?

Employee Retention Credits first came about as part of the original COVID legislation in 2020, meant to encourage businesses to keep employees on their payroll. The credit was modified to be much more lucrative for 2021, effectively reimbursing eligible employers qualified wages and healthcare costs up to $5,000 per employee for 2020 and $7,000 per employee in each quarter of 2021.

How Can Paywerx Help Your Business?

Unlike the oftentimes unscrupulous credit mills, whose only goal is to make money and move on, CRI/Paywerx is looking to build long-lasting relationships with our clients. We’re available when the client needs us most, whether it’s providing answers to their questions or being available to the client if the credit is ever called into question by the IRS. Paywerx will help our clients navigate the entire process, provide thorough eligibility advice on the front end, and protect more lucrative programs for the client (PPP Forgiveness, if applicable) by maintaining a long-term vested interest and ensuring the proper rules are followed when filing — allowing us to maximize the return to our clients.

With Paywerx, your organization is provided the comprehensive people and payroll management solutions that your organization needs. By performing ERC calculations for clients who aren’t even on our software platform, Paywerx provides a great marketing opportunity and potentially lucrative work down the line. Inevitably, at some point in the typical client relationship, Paywerx will request the opportunity to quote the client’s payroll business to make them aware of our complete services. In addition, Paywerx has the resources needed to assist the SPU in determining eligibility, calculating the credit, and preparing the necessary 941X to file for the credit. By working closely with many Subject Matter Experts within the SPU network, we provide you with the best answers available as you work with your client and help our clients see maximum refunds.

When Is The Deadline To File?

The ERC Deadline to amend a claim is three years after the payroll tax returns were originally due. Form 941s are considered filed on April 15th of the succeeding year, according to Section 6513 of the tax code. Even though Form 941 for Quarter 2 of 2020 was originally due July 3, 2020, the return is not considered filed until April 15, 2021. Filing deadlines for all of 2020 and 2021 returns are:

  • April 15, 2024 (for 2020 ERC)
  • April 15, 2025 (for 2021 ERC)

Don’t have the time or resources to learn about ERC? CRI/Paywerx can help. While many SPUs and Partners are ahead of the curve on the ERC resources available, even greater opportunities are available. Paywerx has the time and resources needed for your organization to best utilize Employee Retention Credits. Send requests to [email protected] or contact Randy Matthews directly at [email protected] for an initial consultation today.


Relevant insights

Join Our Conversation

Subscribe to our e-communications to receive the latest accounting and advisory news and updates impacting you and your business.

This field is for validation purposes and should be left unchanged.