The Employee Retention Credit (ERC) is a refundable payroll tax credit based on the qualified wages an eligible employer pays to employees. Eligible employers include businesses, tax-exempt organizations, and certain governmental entities.
Key Information:
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- Refundable Payroll Tax Credit reported on Form 941 (or an amended 941 for a past period)
- Advance payment of the credit may be available
- PPP Borrowers are eligible for the ERC
- Qualified Wages include wages paid and health plan expenses
- The full-time employee calculation is based on a 30-hour week (130 hours per month)
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