How to Maximize Your Potential for Claiming the ERTC on a Multi-Year Basis

The Employee Retention Tax Credit has been claimed by millions of business owners over the years. As Tax Day soon approaches, many of you may be wondering how taking advantage of a prior year slump or slow business quarter, can qualify you to receive up to an extra $28,000 in refundable tax credits before the filing deadline passes.

According to research, the ERTC can be claimed for any year in which your business met the criteria set forth by Congress under the IIJA, C.A.R.E.S. Act,or ARPA. This includes companies that were formed as a part of the pandemic, as well as those that were affected by drastic economic changes.

Due to the retroactive pullback of the extended deadline, the option to claim a full year in 2021 no longer exists with the exception of certain business entities. Our company specializes in helping businesses file for the Employee Retention Tax Credit and in this article we will be showing you how to maximize your filing potential today.

Why Was Employee Retention Tax Credit Created?

The Employee Retention Tax Credit was created in order to assist a multitude of businesses struggling to to stay afloat and avoid bankruptcy filings in the midst of a pandemic. A recent study shows that nearly 60 % of business owner participants in a Bredin Poll were unaware that they could file for funds under the payroll tax credit. Financially, that equates to a minimum of over $168,000 in lost tax credits for six out of every ten business owners .

However, the passing of Covid-19 related legislation also led to the economic recovery of more than $80 million dollars in stimulus funds across hundreds of industries,with the average ERTC refund amount being between $87,000 and $300,000 (for restaurants). Initially designed to include only a handful of qualifying companies, the credit quickly gained expansion under two additional acts that would virtually rescue hundreds of thousands of companies like yours from implosion.

What is the American Rescue Plan Act?

American Rescue Plan Act

The American Rescue Plan Act or ARPA, is the second installment of the relief bill under the Coronavirus epidemic. Passed in February 2021, this plan enabled the first expansion of the Employee Retention Tax Credit, some of which is still being used by businesses today.

Due to owning a recovery business, or one who’s explicit purpose is to guide the economy into a positive state of cash flow, many business owners are able to claim payroll tax credits in amounts that far exceed what a typical institution would otherwise qualify for.

Our highly trained tax specialists have helped businesses across the country to obtain as much as $100,000 in ERTC funds for falling under a category that allows the maximum potential rebate against the ever increasing payroll costs that are required to run a profitable business.

How to Still Qualify for the ERTC in 2020 and 2021

The opportunity to qualify for the ERTC for tax years 2020 and 2021 was essentially eradicated at the government’s request to pull the plug on the fourth business quarter of 2021. Due to the guidelines under the refundable payroll tax credit, there is still an opportunity to file for multiple years.

Granted additional conditions are satisfactory, your business could claim up to $33,000 per qualifying employee whose wages are within the guidelines over multiple years. The following criteria are essential in determining the full amount of tax credit that your business may be able to claim.

Qualifications for ERTC 2020

  • Have employee wages of anywhere up to $10,000 per full-time employee(up to 50% eligibility)
  • Employ less than 100 full-time employees in 2019 excluding company owners and relatives
  • The ability to exclude payroll expenses used in obtaining PPP or EIDL loans
  • A gross reduction of sales receipts as compared to the same quarter in a prior year or;
  • Have your business operations be partially or fully suspended due to a Covid-19 related mandate

Qualifications for ERTC 2021

  • Have employee wages of anywhere up to $10,000 per full-time employee(up to 70% eligibility
  • Exclusion of funds claimed against PPP or EIDL loan eligibility
  • Classification as a recovery business under ARPA or;
  • A gross reduction of sales receipts as compared to the same quarter in a prior year or;
  • Have your business operations be partially or fully suspended due to a Covid-19 related mandate

The tax professionals at can help your company receive all of the pandemic payroll tax credit that you are entitled to with an in-depth financial assessment as well as a thoroughly completed amended business tax return where applicable.

IRS Notices Pertaining to the Employee Retention Credit

Wages that you paid to eligible employees during the third and fourth quarters of 2021 are subject to the guidance included in the IRS Notice 2021-49 (changes via ARPA). The Internal Revenue Service asserts the following provisions when considering payroll provided between the period ending October 31st, 2021 and January 1st, 2022.

  • Businesses considered severely financially distressed have a modified qualified wage definition
  • Employer eligibility is inclusive of those deemed “recovery startup businesses”
  • Excludes accounting for wages under section 5003 ARP for Economic Aid to Hard Hit Small Venues,Nonprofits, or Venues Act(including restaurant revitalization grants)
  • Treatment of tips as qualified wages in regards to section 45B credit

It is also important to note that additional provisions should be handled cautiously when considering full-time employees or equivalents,qualified wage deduction disallowances, or your employer tax deposits related to advanced ERTC payments.

Filing for an Employee Retention Credit in 2022

Filing the ERTC in 2022 can seem daunting when considering the bevy of rules,changes, and guidelines levied at potentially qualifying business owners. Inevitably,there are many mistakes that can occur or errors that can cost you to repay thousands of dollars over the course of the upcoming year. By completing your return with an ERTC specialist, you can be among the 25% of businesses that collect the Employee Retention Credit you deserve.


The Employee Retention Tax Credit (ERTC) is one of the most economically diverse stimulus incentives over the past fifty years. If you are considering whether your business qualifies to claim up tens of thousands in refundable payroll credits, then speak with one of our highly trained tax specialists today.