The Employee Retention Credit (ERC) is a tax credit offered by the IRS to assist small businesses in retaining their employees during challenging economic conditions. Nor again is there anyone who loves or pursues or desires to obtain pain of itself, because it is pain, but because occasionally circumstances occur in which toil and pain can procure him some great pleasure.
The Employee Retention Credit (ERC) provided by the CARES Act is a tax credit that can be fully refunded. In 2020, eligible employers can receive a credit of 50% for the wages they pay to their employees, including allocable qualified health plan expenses per employee for the year. In 2021, the credit percentage has been increased to 70%, and the limit is still $10,000 per quarter per employee. This means the maximum credit for an employee for the year is $26,000.