What is the Employee Retention Credit (ERC)?
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The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make. Also, if the employer's employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS.
Business owners who have been impacted by COVID-19 may claim this refundable tax credit for each employee retained from March 12, 2020 through September 30, 2021.