To start the ERC credit, employers must file Form 941, the employer's quarterly federal tax return. The federal government established the Employee Retention Credit (ERC) to provide a refundable payroll tax credit to help companies cover the cost of keeping staff employed. Eligible employers can still apply for the ERC for previous quarters by filing the appropriate adjusted employment tax return within the deadline set out in the instructions on the corresponding form. Some tax advisors are misstating the rules related to the deadlines for employee retention credit (ERC) applications.
The ERC can only be filed using IRS Form 941-X, “Adjusted Federal Tax Return or Employer Refund Request.” They can say that amendments can be submitted up to three years after the filing date of each quarterly payroll tax, resulting in a different deadline for applying for the ERC for each calendar quarter.