What is the nonrefundable Portion of Employee Retention Credit?
329 views | Last modified 4/25/2023 3:54:59 AM EST | Added by TaxBandits Team

Applicable To
94X 1099 W-2 ACA W-4

The ERC’s nonrefundable portion generally represents the employer’s share of certain payroll taxes, which may include those from either Social Security or Medicare – depending on the period of the claim. For wages paid after March 12, 2020, and before July 1, 2021, the nonrefundable portion is based on the employer’s 6.2 percent share of Social Security taxes.

For wages paid after June 30, 2021, and before January 1, 2022, that portion is based on the employer’s 1.45 percent share of Medicare taxes. The nonrefundable portion of the ERC must be utilized first, thereby reducing the employer’s applicable share of tax – but not below zero.

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