ERC – Employee Retention Credit
A credit that, for eligible businesses, provides a very significant cash benefit.
The Employee Retention Credit (ERC) is a fiscal incentive created by Congress in the form of a payroll tax credit. The intent of the credit is to combat the negative impact on the economy caused by the COVID-19 Pandemic. More specifically, it is meant to help employers retain their employees.
The potential maximum combined credit for 2020 and 2021 is $26,000 per employee. Receiving a Paycheck Protection Program (PPP) loan does not instantly exclude you from qualifying.
Click below to view a video that explains ERC in detail.