Eligible employers can can claim the employee retention credit, a refundable tax credit equal to 50% of up to $10,000 in qualified wages (including health plan expenses). These eligible employers are businesses with operations that have been partially or fully suspended due to government orders due to COVID-19 or those that have had a significant decline in gross receipts compared to 2019.
The American Rescue Plan Act, enacted March 11, 2021, extended the employee retention credit (and the availability of certain advance payments of the tax credits) until December 31, 2021.
ERTC Updates Archive
- IRS FAQs Regularly Updated FAQs on Employee Retention Tax Credit
- 4/15/21 IRS Webpage on Employee Retention Credit
- Proskauer Detailed Analysis on Employee Retention Tax Credit (ERTC)