What is the Employee Retention Credit?
The Employee Retention Credit (ERC), originally passed under the CARES Act, is a refundable tax credit that encourages businesses to keep employees on their payroll.
Eligible employers negatively impacted during COVID-19 can claim this tax credit against qualified wages paid to their employees (including qualified health plan expenses). Qualified employers can claim a credit against 70% of qualified wages paid. The amount of wages that qualifies for the credit is $7,000 per employee per quarter for the first three quarters of 2021.
Eligible employers negatively impacted during COVID-19 can claim this tax credit against qualified wages paid to their employees (including qualified health plan expenses). Qualified employers can claim a credit against 70% of qualified wages paid. The amount of wages that qualifies for the credit is $7,000 per employee per quarter for the first three quarters of 2021.
