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Employers may be eligible for the Employee Retention Credit (ERC), established by the Coronavirus Aid, Relief and Economic Security (CARES) Act. The ERC provides up to $5,000 in credits for each employee retained during a specified period of time. To qualify for the credit, employers must meet two criteria: 1. Employers must have been in business prior to February 15, 2020, and either have full or partial operations suspended due to governmental orders related to COVID-19 or experience a significant decline in gross receipts during a calendar quarter compared with the same quarter in 2019. 2. Employers must retain employees through December 31, 2022 and not reduce payroll costs below 90% of what was paid from March 13, 2020 to June 30, 2020. Employers who meet the qualifications for the ERC can apply during 2021 and 2022 for a credit worth up to 80% of qualified wages paid in each quarter, with a maximum credit of $10,000 per employee per year. The credit is available no matter how man...

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   The employee retention credit (ERC) helps employers retain their employees and offset the cost of providing health care benefits during these difficult economic times. The ERC is a refundable tax credit against certain employment taxes equal to 50% of qualified wages paid from March 13, 2020 through December 31, 2020. Qualified wages are limited to $10,000 for each employee for all calendar quarters. Eligible employers can claim the ERC on Form 941 when filing their quarterly employment tax returns. Employers must have experienced either:   • A full or partial suspension of operations due to an order from an appropriate governmental authority limiting commerce, travel or group meetings due to COVID-19; or • A significant decline in gross receipts compared to the same quarter in the prior year. To be eligible for the ERC, employers must claim an employer portion of Social Security tax on wages paid after March 12, 2020 and before January 1, 2021. The credit is available for both f...

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