The Employee Retention Credit
It's a credit associated with employment taxes, but it's based on wages you paid to your employees, so it's essentially rewarding you as an employer for keeping your people paid throughout the pandemic. Established by the CARES Act, the ERC is a refundable tax credit – a grant, not a loan – that a business can claim even if they had to shut down business permanently. The Employee Retention Credit Tax is readily available to both small and mid-sized businesses and is based on qualified incomes and healthcare paid to employees. Qualifying businesses can make the most of the following offerings: - Approximately $26,000 per employee - Available for 2020 and the very first 3 quarters of 2021 - Qualify with decreased profits or COVID event - No limit on funding - Employee Retention Credit (ERC) is a refundable tax credit The ERC has actually gone through a number of changes and has many technical details, consisting of how to determine qualified wages, which employees