The Employee Retention Credit (ERC) is a refundable tax credit that was introduced in March 2020 through the CARES Act to provide financial relief to businesses affected by the COVID-19 pandemic. The credit is intended to encourage employers to keep their employees on payroll and retain their workforce during these difficult times. The credit can be claimed on eligible wages paid between March 12, 2020, and December 31, 2021.
To qualify for the ERC program, businesses must meet specific eligibility criteria, such as a significant decline in gross receipts or experience business disruption as a result of COVID (a full or partial suspension of business operations due to government orders). This program is a great opportunity for businesses to take advantage of the program's benefits and be better positioned to recover from the pandemic's economic impact.