The short answer is no.
The Employee Retention Credit (ERC) is a benefit offered to eligible employers that allows them to claim a fully refundable tax credit against certain employment taxes. This means that it is not a loan that must be repaid, but rather a credit that can be used to offset taxes owed. The credit is designed to help employers retain their employees during difficult economic times, and is typically applied to payroll taxes paid during a specified period.
For most taxpayers, the refundable credit will be greater than the payroll taxes paid during the credit-generating period. This means that the employer will receive a refund for the excess credit, rather than having to pay back any portion of the credit. The ERC is a valuable tool for employers looking to keep their employees on payroll during difficult economic conditions, and can help to provide much-needed financial support to businesses and their workers.
- Internal Revenue Service (IRS)
- The CARES Act
- U.S. Department of Labor
- What Is The Employee Retention Credit (ERC), And How Does The Program Work?
- FAQs: Employee Retention Credit under the CARES Act
Internal Revenue Service (IRS)