Employee Retention Tax Credit: Explained By The IRS Guide


 


Small businesses constitute around 99.9% in the US. Almost half of the private workforce are these business employees of the small business. Unfortunately, this sector got hit during the pandemic, which has caused a drastic impact on the employers and the employees. It started way back in 2019, and many continue to struggle because of the coronavirus.

To counter this and soothe the employers' dilemma, then US President Donald Trump made the CARES Act into a fully-fledged law on March 27, 2020, and this CARES act includes the employee retention tax credit IRS guidance. The Employee Retention Credit (ERC) is an economic relief initiated to help businesses throughout the pandemic. As the name suggests, it's a refundable tax credit against certain employment taxes to help keep employees on the payroll.

Source : CPA Due Diligence


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