2021 – 03/12 The American Rescue Plan Act (ARPA), which was signed into law on March 11, extends the Employee Retention Credit from June 30 until Dec. 31, 2021. The law continues the rate of the credit at 70% for this extended time period. It also continues to allow for up to $10,000 in qualified wages for any calendar quarter. Taking into account an earlier law extension and the ARPA extension, this means an employer could potentially have up to $40,000 in qualified wages per employee through 2021. The new law also makes some modifications to the credit, including limiting it to $50,000 per calendar quarter for an eligible employer that is a “recovery startup business.” Contact us for more information.
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