2021 – 01/27 The Employee Retention Credit (ERC) is extended for employers who keep workers on payroll. The recently enacted Consolidated Appropriations Act made several changes to the tax credit, which was created under the CARES Act. This includes modifying and extending it through June 30, 2021. For the first 2 quarters of 2021, eligible employers can claim a refundable tax credit against the employer share of Social Security tax equal to 70% of qualified wages they pay to employees after Dec. 31, 2020, through June 30, 2021 (limited to $10,000 of qualified wages per employee per calendar quarter). So the maximum ERC amount available is $7,000 per employee per quarter, for a total of $14,000 in 2021.

Similar Posts