Employee Retention Credit:

The Employee Retention Credit (ERC) is a refundable tax credit established by the CARES Act to help businesses that were impacted by the Covid-19 pandemic. Here are some key features of ERC:

• Available to small and mid-sized businesses: The ERC is available to both small and mid-sized businesses that were impacted by Covid-19.
• Based on qualified wages and healthcare: The credit is based on qualified wages and healthcare expenses paid to employees during the eligible period.
• Up to $26,000 per employee: Businesses can claim up to $26,000 per employee for 2020 and the first three quarters of 2021.
• Qualify with decreased revenue or COVID event: Businesses can qualify for ERC if they experienced a significant decline in revenue or were impacted by a Covid-19 event.
• No need to prove loss of revenue: Unlike other stimulus programs, businesses do not need to prove a loss of revenue to qualify for ERC.
• Additional operational impacts qualify: Businesses can also qualify for ERC based on operational impacts such as shutdowns of supply chains/vendors, additional spacing in accordance with social distance regulations, reduction in services, or changes in business hours.

ERC is designed to help businesses retain their employees and stay afloat during challenging times. It can be a valuable resource for small and mid-sized businesses that were impacted by Covid-19.