Employee Retention Tax Credit (ERTC) Update

Update: 11/15/2021

ERTC Nixed for Q4-2021 for Most Businesses

  • The recently passed Infrastructure Investment and Jobs Act – H.R. 3684 – ends the Employee Retention Tax Credit (ERTC) 3 months early for most businesses
    • President Biden is expected to sign the bill into law immediately
  • Section 80604 of the infrastructure legislation ends the employee retention tax credit (ERTC) early, making wages paid after September 30, 2021, ineligible for the credit, except for wages paid by an eligible recovery startup business
    • Therefore, wages paid in Q4 of 2021 are not eligible for the ERTC
  • Here is a link to an article that covers the recovery startup business eligibility
  • The ERTC was created by the Coronavirus Aid, Relief, and Economic Security (CARES), and amended by the Consolidated Appropriations Act, 2021
    • The American Rescue Plan Act, enacted March 11, 2021 made the ERTC available to eligible employers for wages paid during Q3 and Q4 of 2021; however, H.R. 3684 repeals the extension for Q4
  • Wages paid in Q3/2021 and in prior quarters are still eligible for the ERTC, and an employer still has the ability to amend the 941 for those quarters and claim the ERTC for eligible wages.

If you have any questions, please reach out to RASI’s Compliance Department through support request or email at Compliance@rsiaccounting.com.

Below Formerly Posted: 10/7/2021

Has the Employee Retention Tax Credit (ERTC) Ended as of September 30, 2021?

  • It has been heard that the ERTC was ending early and would not be available in the fourth quarter of 2021
  • As of October 7th 2021, the ERTC is still available until the end of the year
  • The Infrastructure Investment and Jobs Act (H.R.3684) has not become law at this date
    • The current language of the bill does end the ERTC as of September 30, 2021
    • Until the bill becomes law there are no changes to employers’ right to claim the ERTC in the fourth quarter of 2021
  • The bill may become law in the near future
    • It is a prudent business decision to delay any advance requests of a credit through the filing of IRS Form 7200 until the fate of the bill is known
  • Keep your eye out for future updates on the Infrastructure Investment and Jobs Act