IRS ERC Moratorium Updates

Stay informed and up-to-date on the latest news pertaining to the temporary pause on the  Employee Retention Credit program.

Employee Retention Credit Moratorium 2023

You're facing the IRS's recent halt on new Employee Retention Credit claims, and it's throwing you for a loop. We've got your back. In this guide, we're breaking down what this freeze means for you, why it's happening, and how it affects your claims.

Learn more in this article about what you need to know pertaining to the recent pause of this program.

Employee Retention Credit Moratorium 2023

Employee Retention Credit Filing Scams

You're wise to explore the Employee Retention Credit (ERC) to offset pandemic losses. But watch out! Scammers are preying on business owners like you, promising quick ERC cash. Don't bite.

Arm yourself with knowledge on how to protect yourself from fraudulent behavior. Learn more in this article


Employee Retention Credit Filing Scams

Employee Retention Credit Pause of IRS Refunds

To better understand this most recent pause on the ERC Refund program by the IRS, it is important to understand the following points: IRS ERC refund status, ERC refund timeline 2023 , how long to receive ERC refund, ERC fraud claims, and more.

Read the entire article here.

Employee Retention Credit Pause of IRS Refunds

IRS ERC Moratorium Due to Scams

To better understand what the IRS ERC Moratorium means for present and future claims, it is important to cover the following points: what the ERC pause means for current claims, withdrawing an existing claim for businesses that have already filed, waiting for the IRS ERC settlement program to be finalized, ERC criminal investigations and IRS guidance, why did the IRS pause these claims, what is next for employers, and the best ERC filing company.

Read the entire article here.

IRS ERC Moratorium Due to Scams

Frequently Asked Questions

What is the Employee Rentention Program (ERTC)?

The Coronavirus Aid, Relief, and Economic Security Ac, signed into law on March 27, 2020, included two programs to assist businesses with keeping workers employe: Employee Retention Tax Credit (ERTC) administered by the Internal Revenue Service and the Payroll Protection Program (PPP) administered by the Small Business Administration.

How is ERTC different from the Payroll Protection Program(PPP)?

PPP funds are not taxable as revenue and you may still take deductions for the payroll covered by PPP. The funds from the PPP are distributed based on 2.5 months of payroll and a minimum of 80% of the funds must be used on payroll to be eligible for forgiveness.

ERTC tax credits, however, are credits (or refunds) for a percentage of payroll in each quarter that you qualify. There are specific rules for determining eligibility by quarter, and limiting the dollars that can be claimed for each employee.

If I Received Funds from the PPP, Do I Still Qualify for the ERTC?

The short answer is “Yes”. You can claim ERTC even if you received PPP funds. In March of 2021, The American Rescue Plan Act of 2021 created expansions  and modifications to existing criteria of Employee Retention Tax Credit.

Businesses that received PPP funds could now also claim ERTC  tax credits. ERTC credits can be retroactively claimed for businesses that qualified in 2020. The ERTC qualification period was extended through 9/30/21 with lower eligibility requirements.

The refundable credit amount increased from 50% of qualifying wages in 2020 to 70% in 2021. The per-employee cap on qualifying wages was increased from $10,000 for all of 2020 to $10,000 per quarter for the first 3 quarters of 2021.

How Do I Apply for the Employee Renention Tax Credit and My CPA Do This?

Unlike the Payroll Protection Program,  there is technically no application process for the Employee Retention Tax Credits. You would simply claim the ERTC tax credit like any other tax credit by asserting to the IRS that you can legally claim the credit.

Whether your tax accountant is a CPA or EA, they most likely only prepare Federal and State Income Tax Returns. However, ERTC credits are claimed against Employment Taxes on Form 941, and cash advanced through Form 7200.

The ERTC program is quite complex, which one of the main reasons most CPA's do not mention or attempt the claim process. It is also the reason most businesses pursued the PPP loan instead.

For prior quarters, you must file an amended form (the Form 941-X) to reduce your current quarter’s tax contribution. Also, you must request a refund of excess credits.

ERTC Specialists focus only in this specific tax credit in order to maximize refunds, ensure accuracy, bulletproof your claim and save time. ERC Specialists provide audit protection and peace of mind.

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