ERC at a Glance

  • The ERC provides a refundable tax credit to help businesses with the cost of keeping their staff employed
  • This program expired on September 30, 2021
  • Businesses are eligible to receive ERC and PPP (but wages that are qualified for ERC cannot have been paid with PPP funds)
  • For tax year 2021, the refundable tax credit is: 70% of qualified wages paid per employee (up to a maximum amount of $7000 per employee, per quarter and up to $21,000 for the entire year)
  • For tax year 2020, the refundable tax credit is: 50% of qualified wages paid per employee (up to a maximum amount of $5000 per employee for the entire year)
  • If you qualify for ERC but you didn’t get a chance to claim it, you may do so retroactively (back to March 27, 2020) using Form 941-X