Employee Retention Credit, Thursday Tip from Brian R. Schobel, CPA

With all this Covid relief money flowing from our federal government, it is difficult to pin down what subsidies a business can claim. It was designed to keep employees on the payroll. This credit was extended through June 30, 2021.

As a result of the new legislation, eligible employers can now claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages they pay to employees after December 31, 2020, through June 30, 2021.

Qualified wages are limited to $10,000 per employee per calendar quarter in 2021. Thus, the maximum ERC amount available is $7,000 per employee per calendar quarter, for a total of $14,000 in 2021.