According to the IRS, you have three years from the day you filed your first return or two years from the date you made payments to file an updated federal hiring tax return. This could be a partial or total suspension of normal operations, but only if a government mandate required you to do so. Otherwise, you should have seen a decline in your company's gross revenues, specifically during the pandemic. While a non-profit organization is generally exempt from taxes, it does qualify as a type of trade or business for the purposes of the ERC credit.
However, this was changed with subsequent changes in the law. A company or non-profit organization that has received a PPP loan can still apply for the ERC. For a large employer, qualifying wages are what you paid employees so that they wouldn't work. Once again, this will relate to the suspension of business operations or as a result of a decrease in their gross revenues.
The only difference between a large employer and a small employer is that the small employer can claim a salary regardless of whether the employees are working or not. You can still apply for the ERC by retroactively filing the IRS Form 941-X. This is called an Employer's Adjusted Quarterly Federal Tax Return, also known as a request for reimbursement. Therefore, you should carefully consider the upcoming statute of limitations so as not to miss out on these refunds.
THE CBIA IS FIGHTING TO MAKE CONNECTICUT ONE OF THE TOP STATES FOR BUSINESS, JOBS AND ECONOMIC GROWTH. A BETTER BUSINESS CLIMATE MEANS A BETTER FUTURE FOR ALL. If you haven't yet applied for your qualifying wage tax credits and you're applying for ERC retroactively, you'll need to file IRS Form 944-X or 943-X. The form you need depends on the type of company you have.
