The IRS is urging employers to take advantage of the newly-extended employee retention credit (ERC), designed to make it easier for businesses that, despite challenges posed by COVID-19, keep their employees on the payroll.
As a result of the legislation, eligible employers can now claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages they pay to employees after Dec. 31, 2020, through June 30, 2021.
The law limits qualified wages to $10,000 per employee per calendar quarter in 2021. Thus, the maximum ERC amount available is $7,000 per employee per calendar quarter, for a total of $14,000 in 2021.
Find the eligibility requirements here.