The IRS issued guidance for employers assuming eligibility for the employee retention tax credit (ERTC) in October – December 2021, the fourth calendar quarter. Employers who received an advanced ERTC payment or reduced their employment tax deposits can repay or deposit the taxes without penalty, recognizing one of the requests by the National Restaurant Association in a November 15 letter. The enactment of the Infrastructure Investment and Jobs Act terminated the ERTC for the fourth quarter.
Employers that reduced federal tax deposits for wages paid during the fourth quarter can have penalties waived for deposits due before Dec. 20, 2021 as long as they meet three criteria:
To learn more, register for next week’s webinar: How the Employee Retention Tax Credit Has Changed in Q4 and Ways to Prepare for 2022, December 16 at 2pm ET.