Employee Retention Tax Credit (ERTC) Service
The Paychex ERTC Service can help any size business claim the employee retention tax credit retroactively if qualified wages were paid to eligible employees after March 12, 2020.
There are factors that impact eligibility, including if during the pandemic:
- Operations were partially or fully suspended under government orders due to COVID-19
- Your business experienced a decline in percentage of gross receipts
- You opened after Feb. 15, 2020, and might qualify as a Recovery Startup Business
How the ERTC Service Works for You
Secure an infusion of funding into your business with the employee retention tax credit, plus with the Paychex ERTC Service, your business receives:
- A specially trained ERTC expert to review eligible wages and forecast possible credit
- A report providing full documentation of all calculations
- Preparation and filing of the respective amended returns
Benefits of the Paychex ERTC Service
Checking on Eligibility is Easy
Paychex provides a questionnaire to help in identifying whether you might be eligible to request the ERTC for qualifying wages paid at no risk to you.
There is a fee for the ERTC Service only if credits can be claimed. If you're not eligible you won't be charged.
If interested, contact your payroll representative.
It's Not Too Late to Apply
If you did not process payroll with us in 2020 or 2021, we still can help non-PEO customers with the ERTC.
Switch to Paychex and we'll provide a questionnaire to assist you in identifying whether you might be eligible to request the employee retention tax credit.
There is a set-up fee if you are eligible, plus a charge for the service if credits are identified.
We Can Still Help Your Business
Did you process payroll with Paychex in either 2020 or 2021 — or both? We have your wage data and can help you apply for the ERTC.
We provide non-PEO customers with a questionnaire to assist you in identifying whether you might be eligible.
There is a fee for our service only if credits can be claimed. If you're not eligible you will not be charged.
Satisfied Clients Praise ERTC Service: Easy Process, Positive Outcomes
From a family-owned restaurant to a insurance agency to a national franchise and every size business in between, clients of the Paychex ERTC Service have smiles on their faces. These businesses survived the financial challenges of the pandemic by keeping their employees on payroll and when the employers themselves needed help, Paychex stepped in with the expertise businesses have come to expect.
"Paychex stays on top of things and advocates for me, the client, in a way that allowed me to realize I had the ability to access those (ERTC) funds."
ERTC By the Numbers
$177,900
Paychex customers, including those using our ERTC Service, on average, have qualified for this amount in credit.
More than 76,400
The number of Paychex customers who have received credit.
$5,000/$7,000
In 2020, an eligible business could claim up to $5,000 per employee annually for ERTC. In 2021, businesses could claim up to $7,000 per employee per quarter.
Excellence in Technology Award
The Brandon Hall Group awarded Paychex a gold medal for Excellence in Technology in 2021 for our Employee Retention Tax Credit (ERTC) service. This technology resource empowered thousands of business owners to claim retroactive tax credits for qualified wages and health plan expenses paid on behalf of employees in 2020 and 2021. Our Paychex ERTC service was honored for "best advance in HR or workforce management technology for small and medium-sized businesses."
Employee Retention Tax Credit FAQ
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How does the ERTC work?
How does the ERTC work?
The employee retention tax credit is a percentage of qualified wages paid to an employee. Several laws have changed the percentage based on which quarter the a business claims the credit. This fully refundable credit is applied to the portion of payroll taxes a business pays. Read our ERTC article in the Paychex Knowledge Center.
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How is the ERTC calculated?
How is the ERTC calculated?
Wages or compensation subject to FICA taxes and qualified health expenses qualify when calculating the employee retention credit. These must have been paid after March 12, 2020 through Sept. 30, 2021 (Recovery Startup Businesses have until Dec. 31, 2021). Note: The credit can only be taken on wages that are not forgiven or expected to be forgiven under the Paycheck Protection Program.
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Does the employee retention credit have to be paid back?
Does the employee retention credit have to be paid back?
No. It is a refundable credit based on payroll taxes already paid by an employer.
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Who is eligible for the employee retention credit?
Who is eligible for the employee retention credit?
Businesses that had operations partially or fully suspended under government orders due to COVID-19 and experienced a decline in percentage of gross receipts as compared to the same quarter the previous year (e.g, 2020 to 2019 or 2021 to 2020) qualify for the ERTC.
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How does my business claim ERTC?
How does my business claim ERTC?
Businesses should consult with their accounting professional or a payroll provider such as Paychex, which provides an ERTC Service to help retroactively identify and claim the credit by filing an amended Form 941.
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Can I still apply for the ERTC?
Can I still apply for the ERTC?
Yes. The deadline to have amended tax forms submitted to the the IRS to claim any credit for Tax Year 2020 is April 15, 2024. The submission deadline for Tax Year 2021 is April 15, 2025. However, the deadlines might differ to have materials submitted to a preparer that requires time to process your application.
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When will my claim be processed by the IRS?
When will my claim be processed by the IRS?
The IRS announced that any claims filed on Sept. 14, 2023, and after that date will not be processed until at least early 2024. Any existing claims received prior to that date will continue to be processed, but at a slower rate.
Interested in Help with Other Tax Services?
Businesses leave billions of dollars in tax credits on the table every year. Paychex makes it simple by saving you time, identifying available tax credits and helping you claim them.