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Deadline Approaching for ERTC and FFCRA Programs

As the clock ticks down to April 15, 2025, the Economic Recovery Center is urging independent contractors and business owners to take action regarding their eligibility for the Employee Retention Tax Credit (ERTC) and the Families First Coronavirus Response Act (FFCRA). Despite widespread confusion surrounding these programs, it's crucial for those affected to understand their potential claims and the urgency behind claiming them.

A Closer Look at ERTC and FFCRA

The ERTC and FFCRA were introduced under the Trump administration's COVID-19 relief measures in 2020, with the primary aim to financially aid businesses and workers impacted by the pandemic. These programs were designed to facilitate tax refunds for eligible employers and independent contractors affected by government mandates or reduced revenue.

Confusion Between ERTC and PPP Loans

The payroll protection program (PPP) and ERTC have often been conflated due to their overlapping purposes. However, claiming benefits from one does not exclude eligibility for the other. In fact, businesses that received PPP loans can still qualify for ERTC—as long as specific criteria are met. This distinction is vital and needs to be understood by all stakeholders involved.

Key Qualifications for ERTC

To qualify for the ERTC, businesses must meet one of the following criteria:
1. Business Operations Impact: There was a government mandate that altered the way business was operational during the COVID-19 pandemic significantly.
2. Revenue Decrease: There was a demonstrable decrease in revenue when compared to pre-pandemic sales figures from 2019.

Eligible businesses can claim up to $21,000 per W2 employee for the 2020 and 2021 tax years. Given that many businesses are still unaware of these benefits, it's concerning that approximately 70% of eligible businesses have yet to file their claims.

FFCRA for Independent Contractors

Independent contractors, specifically those who filed their taxes as 1099 filers in 2021, may also have access to FFCRA benefits. This act can provide reimbursements up to $32,000 if they or a dependent contracted COVID-19 during 2021.

Consequences of Missing the Deadline

Failing to claim these tax refunds could mean that unclaimed funds will be redirected to other government programs, potentially leaving both businesses and independent contractors without the support they desperately need. Chase Henderson, President of the Economic Recovery Center, emphasized the importance of these funds, stating, “This is literally their money that was overpaid and will be funneled to other programs if not claimed.” He highlights that a free, no-cost analysis can be a critical first step for business owners and independent contractors to reclaim their funds.

Even If Your Business Has Shut Down

Importantly, even if a business has closed down or an independent contractor is no longer operational, there is still a possibility of qualifying for these credits. Those interested can visit IRS.Gov for detailed information or conduct a sufficient analysis through the Economic Recovery Center.

For business owners seeking ERTC help, visit www.EconomicRecoveryCenter.com, or for independent contractors examining FFCRA claims, please see www.1099TaxCredit.com.

Take Action Now

In conclusion, the approaching deadline of April 15, 2025, is not merely a date to remember but a substantial opportunity for many American business owners and independent contractors to reclaim funds and restore financial stability post-pandemic. The message is clear: don’t miss out on your rightful claims. If you have questions or need help, immediate assistance is available by contacting the Economic Recovery Center directly at (385) 376-2372.

By taking timely action, business owners and independent contractors can navigate this financial landscape more effectively, ensuring that they benefit from the available taxpayer resources designed to aid recovery in these challenging times.