The Employee Retention Credit, Explained.Think of the Employee Retention Credit (ERC), as a cash rebate from the IRS. For businesses that survived through COVID, it is almost like a reward for not giving up. As far as what it is – it is cash in your pocket – like a personal tax return for your business.
Business owners impacted by COVID-19 can claim up to $5,000 in refundable tax credits for each employee on their 2020 payroll, and up to $21,000 in refundable credits for each employee on their 2021 payroll.
The Employee Retention Credit (ERC) was initially passed under the CARES Act, the substantial COVID-19 government stimulus bill, to reward business owners for retaining employees throughout the COVID-19 pandemic. These are payroll tax credits that could mean big payouts for a majority of business owners. Capfront is the country’s leading expert in understanding the complicated rules enacted in the ERC tax code. Our firm specializes in maximizing ERC credits and funding for small and medium-sized businesses. We handle all the hard stuff, letting you focus on getting back to doing what you do best, while we do what we do best.