Employee Retention Credit (ERC) Update
 
Initially, the ERC was a refundable quarterly tax credit based on wages for business owners to retain staff during the Covid-19 pandemic. It was set at 50% of up to $10,000 in qualifying wages per employee for the last three quarters of 2020. The American Rescue Plan Act extended and expanded the ERC to include up to 70% of $10,000 in qualifying wages per employee per quarter in 2021, making it much more lucrative to business owners.