Employee Retention Credit Discontinued for 4th Quarter 2021Published:
The Infrastructure Investment and Jobs Act signed into law Nov. 15, 2021 ended the availability of the Employee Retention Credit for the fourth quarter of 2021 for all employers besides recovery startup businesses.
Employers who reduced their employment tax deposits in anticipation of taking this credit in the 4th quarter of 2021 will be required to pay the amounts initially retained on or before the due date for wages paid on 12/31/21. They will also have to report the resulting tax liability from the termination of the Employee Retention Credit on their 4th quarter employment tax return. Employers who received advance payments of the Employee Retention Credit will also be expected to pay the advance back by the due date of their applicable employment tax returns.
If you would like additional information or to discuss the topics mentioned, please contact Chaleise Fleming, CPA.