Employee Retention Credit
E821933
The Employee Retention Credit is a refundable federal tax credit designed to encourage businesses to keep employees on their payroll during the economic disruptions caused by the COVID-19 pandemic.
Statements (47)
| Predicate | Object |
|---|---|
| instanceOf |
COVID-19 relief measure
ⓘ
federal tax credit ⓘ |
| administeredBy | Internal Revenue Service NERFINISHED ⓘ |
| alsoKnownAs | Employee Retention Tax Credit NERFINISHED ⓘ |
| appliesTo |
certain mid-sized businesses
ⓘ
eligible employers ⓘ small businesses ⓘ |
| availableFor |
certain health insurance costs
ⓘ
wages paid to employees ⓘ |
| basedOn |
qualified health plan expenses
ⓘ
qualified wages ⓘ |
| beneficiary | employers retaining employees during COVID-19 disruptions ⓘ |
| claimMethod |
adjusted employment tax return Form 941-X
ⓘ
employment tax return Form 941 NERFINISHED ⓘ |
| country |
United States of America
ⓘ
surface form:
United States
|
| coveredPeriod2020 | 2020-03-13 to 2020-12-31 ⓘ |
| coveredPeriod2021 | 2021-01-01 to 2021-09-30 ⓘ |
| createdBy | Coronavirus Aid, Relief, and Economic Security Act NERFINISHED ⓘ |
| economicImpact | reduced payroll tax liabilities for eligible employers ⓘ |
| eligibilityCriterion |
full or partial suspension of operations due to government orders related to COVID-19
ⓘ
significant decline in gross receipts due to COVID-19 ⓘ |
| endDate | 2021-09-30 ⓘ |
| extendedBy | Consolidated Appropriations Act, 2021 NERFINISHED ⓘ |
| governingLaw | Internal Revenue Code NERFINISHED ⓘ |
| initialRule | employers could not claim ERC if they received a PPP loan ⓘ |
| interactionWith | Paycheck Protection Program NERFINISHED ⓘ |
| introducedIn | 2020 ⓘ |
| laterRule | employers could claim ERC and PPP but not on the same wages ⓘ |
| legislatedBy | United States Congress NERFINISHED ⓘ |
| maximumCredit2020PerEmployee | 5000 USD ⓘ |
| maximumCredit2021PerQuarterPerEmployee | 7000 USD ⓘ |
| modifiedBy |
American Rescue Plan Act of 2021
NERFINISHED
ⓘ
Infrastructure Investment and Jobs Act NERFINISHED ⓘ |
| notAvailableFor | self-employed individual’s own wages ⓘ |
| offsets | employer share of Social Security tax ⓘ |
| purpose |
encourage employers to keep employees on payroll
ⓘ
provide financial relief to businesses affected by COVID-19 ⓘ |
| refundable | true ⓘ |
| relatedProgram |
Economic Injury Disaster Loan program
NERFINISHED
ⓘ
Paycheck Protection Program NERFINISHED ⓘ |
| relatedTo | COVID-19 pandemic ⓘ |
| sector | business taxation ⓘ |
| shortName | ERC NERFINISHED ⓘ |
| specialRule | recovery startup businesses could claim ERC through 2021-12-31 ⓘ |
| startDate | 2020-03-13 ⓘ |
| statuteOfLimitations | generally three years from filing of original employment tax return ⓘ |
| taxType | employment tax credit ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.
CARES Act supplemental COVID-19 relief provisions in Consolidated Appropriations Act, 2021
→
modifiesProgram
→
Employee Retention Credit
ⓘ