ERC: Employee Retention Credits
The Employee Retention Tax Credit is a federal program designed to incentivize businesses to retain employees during periods of economic hardship, providing a tax credit based on a percentage of qualified wages paid to eligible employees.
As part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, an Employee Retention Credit (ERC) was introduced to encourage employers to retain employees during the recent pandemic by offering them a refundable tax credit that can be used to offset the costs of employee retention. There are no specific limitations on how the business should use these funds.
EIAG helps clients by outlining a reasonable basis for claiming the ERC, scoping activities such as receiving PPP forgiveness or contributing toward employee health benefits, and subsequently quantifying and applying for the estimated tax credit benefits.
Learn more in our online guide, ERC: Employee Retention Credit. A Definitive Guide [2023].