Employee Retention Credit

The Employee Retention Credit (ERC) was created as part of the CARES Act to encourage businesses to continue paying employees by providing a credit to the eligible employer for wages paid to eligible employees. The ERC could be a valuable alternative for those who either did not apply or did not qualify for PPP and other emergency loans. Have questions about COVID-19 relief? Visit our COVID-19 Resource Center for more information.

The credit is computed at a rate of 50% of qualified wages paid up to a maximum of $10,000 of wages resulting in a maximum credit of $5,000 per eligible employee.

Eligible Employers

An Eligible Employer (including all members of a control group) must either:

1. Have their operations fully or partially suspended due to orders from a governmental authority OR

2. Suffer a significant decline in gross revenue.

An Eligible Employer CANNOT be either:

1. A governmental employer OR

2. A recipient of a PPP loan.