What is the Employee Retention Credit?


          The economic stimulus bill, known as the Coronavirus, Aid, Relief, and Economic Security (CARES) Act has many features designed to help Taxpayers. The most well-known is the Economic Impact Payments for most Taxpayers. One that is designed for businesses is called the Economic Retention Credit (ERC). Its purpose is to keep people employed.
          If you think that sounds like another part of the CARES Act that has a similar goal, would be correct. Unlike the Paycheck Protection Program, the ERC is available to almost any employer, no matter the number of employees. The exceptions would be government agencies, self-employed individuals, and anyone who participates in the Paycheck Protection Program. There can be no double dipping. 

           The ERC is targeted to assist businesses that were impacted by a governmental “Safer at Home” or “Essential Business” order given because of the COVID-19 pandemic. It is available on a Quarterly basis. It is based on the wages per employee for the same Quarter in 2019. Depending on the circumstances, the credit may not have to be paid back, and there might even be a refund. The CARES Act has a lot of detailed information, and we will continue to share it with you.

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