What is Employee Retention Credit (ERC)?
2.0k views |Last modified 10/14/2024 8:28:22 AM EST | Added by TaxBandits Team

The Employee Retention Credit (ERC) is a tax credit the IRS offered to eligible employers who continued to pay employees while shut down due to the COVID-19 pandemic or experienced significant declines in gross receipts between March 13, 2020, and December 31, 2021. 

Eligible employers were required to report the qualified wages and the employee retention credit on their Form 941 for 2020 and 2021. However, starting in 2022, the IRS has removed the Employee Retention Credit from Form 941 entirely.

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