what is erc

ERC stands for Employee Retention Credit, which is a U.S. federal tax credit available to certain employers, most recently during the COVID-19 pandemic. It was originally designed to help employers who were not eligible for a Paycheck Protection Program loan, but it was later amended so employers who received Paycheck Protection Program loan forgiveness were often still eligible for the Employee Retention Credit. The credit is a refundable payroll tax credit filed against employment taxes, and it provides funding to businesses to make up for some revenue lost during the pandemic. Although it ended on December 31, 2021, eligible employers may still be able to claim the tax credit by filing amended forms with the Internal Revenue Service. However, due to a substantial number of improper claims, processing of amended forms claiming the Employee Retention Credit has been temporarily suspended as of September 14, 2023.