WHAT IS THE ERC?
The Employee Retention Credit (ERC) is a government-sponsored initiative created to provide financial assistance to businesses that have kept their employees on the payroll during the Covid-19 crisis.
About the Employee Retention Credit
What is the Employee Retention Credit (ERC)?
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ERC is a stimulus program designed to help those businesses that were able to retain their employees during the Covid-19 pandemic. Established by the CARES Act, it is a refundable tax credit – that you can claim for your business. The ERC is available to both small and mid-sized businesses. It is based on qualified wages and healthcare paid to employees.
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Up to $26,000 per employee
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Available for 2020 and 2021
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Qualify with decreased revenue or COVID event
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No limit on funding
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ERC is a refundable tax credit
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How much money can you get back?
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For 2020, the credit available per employee is up to $5,000. Then for 2021, the credit can be up to $7,000 per employee each quarter.