Infrastructure Bill Ends Employee Retention Credit For Q4 2021

108 N. Boone St.

Johnson City, TN 37601

Andy Scheu • December 14, 2021

What’s New?

The infrastructure bill, signed by President Biden on 11/15, has ended the employee retention credit program effective 9/30/21. This means that the majority of employers will not be able to claim the credit for Q4 of 2021. Only employers who qualify for the ERC as a recovery startup business will be able to claim the credit for the 4th quarter. Per the IRS, businesses that received advance payments for the 4th quarter or 2021, and are not recover startup business, will need to repay those credits by the due date of the applicable employment tax return in order to avoid penalties.

Can I Still Claim the ERC?

Employers that qualify for the employee retention credit during any period in 2020, as well as Q1 through Q3 of 2021, can still claim the credit available to them. The deadline for claiming the credit is three years after the original employment tax return was filed. For example, if an employer is eligible for the ERC in Q3 of 2021, they will have until October of 2024 to file an amended 941 in order to claim the credit.

Just as the ERC program ended abruptly as part of President Biden’s infrastructure bill, the deadline to claim these credits could be altered by future legislation. It is recommended that employers who qualify work to take advantage of this program as soon as they determine eligibility.

If you need help claiming the employee retention credit, or need additional information, contact us today!

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