As the COVID-19 pandemic continues to impact the economy, many businesses have struggled to keep their doors open and their employees on payroll. The Employee Retention Credit (ERC) program, established as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, has provided much-needed financial support to these businesses, helping them to retain their employees despite financial challenges.
The ERC program allows eligible businesses to claim a credit against their payroll taxes for 50% of wages paid to employees during the pandemic. This credit is available to businesses that have experienced a full or partial suspension of operations due to COVID-19 related shut-down orders, or businesses that have experienced a significant decline in gross receipts.
The ERC program has been widely praised as a lifeline for struggling businesses. By providing financial support to help businesses keep their employees on payroll, the program has helped to prevent widespread layoffs and support economic recovery.
Businesses of all sizes have benefited from the ERC program, from small local businesses to large corporations. Many businesses have reported that the ERC program has played a crucial role in helping them to retain their workforce during a time of unprecedented economic uncertainty.
The ERC program is set to expire at the end of 2021, but there is growing pressure for it to be extended as the pandemic continues to impact the economy. For now, businesses that are struggling to keep their employees on payroll should consider whether they are eligible for the ERC program and take advantage of this valuable financial support.
Find out how much your business qualifies for here