what is erc program

The Employee Retention Credit (ERC) is a stimulus program designed to help businesses that were able to retain their employees during the Covid-19 pandemic. It is a refundable tax credit that businesses can claim on qualified wages and healthcare paid to employees. The ERC was introduced with the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020 during the COVID-19 pandemic to help businesses recover from the economic fallout that occurred. The program is based on qualified wages and healthcare paid to employees, and businesses can claim up to $26,000 per employee. The ERC is available to both small and mid-sized businesses, and there is no limit on funding. The program officially concluded at the end of November 2021, but businesses can still claim the credit retroactively for wages paid after March 12, 2020, through the end of the program. If a business is eligible for the ERC for 2020 and has not yet claimed the credit, it can file amended payroll tax forms to claim the credit and receive a tax refund. The ERC is now available for all four quarters of 2021, and the maximum tax credit has been increased to $7,000 per employee per quarter.