Employee Retention Credit
The employee retention credit (ERC) is a refundable payroll tax credit created by the CARES Act that provides businesses with financial relief in 2020 and 2021. It allows businesses to receive credits of up to $7,000 for each qualified employee for the first two quarters of the year, and up to $14,000 for the remainder of the year. The credit is designed to incentivize businesses to keep their employees on the payroll and help them avoid layoffs. To qualify, businesses must have been affected by government-mandated closures or have seen a significant decline in gross receipts as a result of the pandemic. The ERC can be used in combination with other government aid such as the Paycheck Protection Program (PPP). The Employee Retention Credit (ERC) is a benefit provided by the government to businesses affected by the pandemic. It helps businesses keep their employees on the payroll, and is available to those who have seen a reduction in gross receipts or have been forced to close due to ...