Retroactively claiming an employee retention credit can be daunting! Navigating the intricate details of this process can be overwhelming but with a little guidance, it doesn't have to be. (First), employers must determine if they qualify for the credit by meeting certain criteria such as having operations affected by the coronavirus pandemic and experiencing at least a 50% decline in gross receipts. Once eligibility is established, employers must then calculate their credit amount which is based on total wages paid to employees after March 12th and before January 1st 2021.

Additionally, (also) employers must identify any wages that are not eligible for the credit such as wages that were already taken into account for other credits like FFCRA or CARES Act Credits. Employers should take caution not to double count these wages when calculating the ERC amount. Lastly, businesses need to file Form 941-X and provide proof of payment for all qualified wages in order to receive consideration from the IRS.

Overall, retroactively claiming an employee retention credit can be complex; however with careful attention to detail and proper documentation it may prove beneficial in reducing tax burden!