What’s the Purpose?
The Employee Retention Credit (“ERC”) was first put into effect as a way for employers to retain employees during the 2020 Covid-19 pandemic. This credit was initially introduced under the CARES ACT as a fully refundable tax credit for the March 12, 2020 – January 1, 2021 time period. The ERC has since been extended and expanded with the passing of the American Rescue Plan Act which has made the ERC available each quarter through September 30, 2021.
The ERC is a refundable tax credit against social security taxes up to $7,000 for each employee per quarter through the end of September 2021. Eligible employee wages are those paid to employees not providing services because operations were suspended or due to a decline in gross receipts.
The Employee Retention Credit was extended for Q3 of 2021 under the American Rescue Plan. Qualified employers are able to receive up to $7,000 in tax credits per quarter, per employee with this program. Click below to schedule an appointment to speak with an advisor. There is no cost and no obligation.