What is ERC

The Employee Retention Credit (ERC) is a fully refundable tax credit designed to help businesses impacted by the COVID-19 pandemic. It is available to eligible employers who pay qualified wages to employees between March 13, 2020, and December 31, 2021.

Important ERC Facts

• The ERC is a credit against the employer's share of Social Security tax. It is equal to 70% of qualified wages paid to each employee up to a maximum of $10,000 per quarter (i.e., $7,000 per employee per quarter) for the period from March 13, 2020, through December 31, 2021.

• Eligible employers may receive a maximum credit of up to $28,000 per employee for the 2020 tax year and up to $28,000 per employee for the 2021 tax year.

• Employers that received a Paycheck Protection Program (PPP) loan can still qualify for the ERC, but the same wages cannot be used for both the PPP loan forgiveness and the ERC.

• The credit is available to eligible employers that experience a significant decline in gross receipts (i.e., a 50% or more decline in gross receipts for a quarter compared to the same quarter in the prior year), or that are fully or partially suspended due to a COVID-19 related government order.