Yesterday, Biden signed the new Infrastructure bill into law. A small sentence in the bill changes the end date for Employee Retention Credits from Jan 1, 2022 to a retroactive Oct 1, 2021, which means, if you have claimed ERC on any Q4 payroll, you've now underpaid your payroll taxes and need to get those paid as soon as possible to avoid late fees.
This payroll tax credit has been an amazing help to many businesses, but it's also been a wild ride of revisions, updates, extensions and now retroactive cancellation. We love that this program helped many small businesses and hate to see the support end early, but not sad to be done dealing with the never-ending rules/forms/amendments that came with it.
NOTE: This change does NOT apply to anyone who is considered a "Recovery Startup Business"; ERC is still allowed for Q4 for eligible businesses that started after February 15th, 2020 (and have sales under $1 million per year).
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