Employee Retention Tax Credit (ERTC) Service
The Paychex ERTC Service can help businesses claim the Employee Retention Tax Credit retroactively to March 12, 2020. Your business will receive:
- A specially trained ERTC Service expert to review if qualified wages used
- A report providing full documentation of all calculations
- Preparation and filing of the respective amended returns*
The Infrastructure Investment and Jobs Act ended the ERTC, for most employers, retroactive to Sept. 30, 2021. Recovery Startup Businesses remain able to pay qualified wages through Dec. 31, 2021 to use to claim the credit.
*2020 amended returns from Q2, Q3, and Q4 are due by April 15, 2024, while 2021 amended returns for all quarters are due by April 15, 2025.
How To Qualify for ERTC
Small-business owner and CPA Gene Marks provides a brief video overview of the employee retention tax credit and its benefits. Paychex can easily check for its customers whether their business is eligible for ERTC. During the pandemic:
- Were operations partially or fully suspended under government orders due to COVID-19?
- Did your business experience a decline in percentage of gross receipts?
- Are you a Recovery Startup Business that began after Feb. 15, 2020?
The Benefits of Working with the Paychex ERTC Service
Customers who sign up for the Paychex ERTC Service and HR Services will receive a $1,500 reduction on set-up fees for their HR Services.
Are You a Current Customer?
If you are a current payroll customer of Paychex, we will review your eligibility for the Employee Retention Tax Credit (ERTC). We will evaluate your account at no risk to you. If you do not have any credits you will not be charged for the service. There is a fee for the ERTC Service only if credits can be claimed. Contact your payroll representative if you are interested.
Not a Current Customer?
Even if you were not our customer in 2020 and 2021, by switching payroll providers to Paychex, we can help non-PEO customers with an initial review to see if you are eligible for the Employee Retention Tax Credit. If you are not eligible, you will not be charged a fee. If you are eligible, there is a set up fee. An evaluation of your wages for credits will be part of the ERTC Service and you will only be charged for the service if credits are identified.
Our Clients Share Their Experience About ERTC Service
Courtney Benson had the unfortunate timing of opening Viticulture Wine Bar days before the COVID-19 pandemic resulted in government-mandated shutdowns. She worked within the restrictions to keep the business afloat and then learned about the Employee Retention Tax Credit and her eligibility for a refund. She plans on investing in her business. Watch her video.
"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
$190,000
Paychex customers, including those using our ERTC Service, on average, have qualified for this amount in credit.
More than 49,000
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.
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.