Here are some tips for amending Form 941 for the Employee Retention Credit.
Twice the refund for half the work
A timely filed Form 941 for Q1 2021 did not have a line for Refundable Employee Credit earned in 2020.
An amended Q1 2021 Form 941-X has a line for all the ERC earned in 2020 AND a line for the ERC earned Q1 2021.
By filing an amended Q1 2021 941-X, the first and second period of refundable ERC can be claimed on one form.
Claim on a timely basis
Once past earned ERC’s have been claimed, file current 941’s on a timely basis.
Employers who claim ERC on timely filed 941’s are receiving the refund nearly 3 times faster than those filing 941-X’s
Review the interplay of ERC, PPP, FFCRA, and WOTC
Do not double dip into the credits and relief options!
The organization must “tag” each payroll dollar being used to one credit or relief program.
Get the advice of a professional, but in general
1st allocate to PPP (Paycheck Protection Program) loan forgiveness, free money
2nd FFCRA (Families First Coronavirus Response Act), 100% credit for spent funds
3rd ERC (Employee Retention Credit), 50-70% refund of expenditure
4th WOTC (Work Opportunity Tax Credit), 12.5%-40% credit of wages paid
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