Eligible for Employee Retention Credit? Find out if your firm qualifies

Introduced in the CARES Act, the Employee Retention Credit (ERC) is a refundable payroll tax credit available to businesses negatively impacted in 2020, and potentially in 2021, by the COVID-19 pandemic.

For 2021, employers may claim up to $7,000 per employee per quarter (70% of wages up to $10,000), resulting in a maximum credit of $28,000 per employee.

There are different eligibility requirements and credit amounts for 2020. Firms may not claim this credit on wages paid with forgiven Paycheck Protection Program loan proceeds, or wages used to claim certain other income tax credits.

Find out if your agency qualifies here.

– Vince Sit, Anchin