The IRS has published new guidance last week on the Employee
Retention Credit (ERC). The credit was created in March 2020 to
encourage employers to keep their workforces intact during the
COVID-19 pandemic. Notice 2021-49 addresses various issues,
particularly those related to the extension of the credit through
2021 by the American Rescue Plan Act (ARPA).
The guidance comes as Congress weighs ending the ERC early to
help offset the costs of the pending infrastructure bill. As of
now, the Credit is worth as much as $28,000 per employee for 2021,
or $7,000 per quarter.
ERC ESSENTIALS
The CARES Act generally made the ERC available to employers
whose:
- Operations were fully or partially suspended due to a
COVID-19-related government shutdown order; or
