all about the employee retention credit in 2023
What is the Employee Retention Credit?
As a small or medium-sized business owner, it’s highly probable that your business was negatively impacted by the COVID-19 pandemic, which affected businesses worldwide. However, it’s important to note that you weren’t alone in this situation.
The origin of the Employee Retention Credit
Due to the widespread financial distress caused by the pandemic, the US government enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help get businesses back on their feet. The CARES Act includes a special section called the Employee Retention Credit (ERTC), which is designed to help eligible businesses recover from the economic impact of COVID-19.
How much is the Employee Retention Credit?
If you are an eligible employer, you can receive a refund of up to $5,000 per employee for the entirety of the year 2020, and up to $7,000 per employee kept on your payroll for each quarter of the year 2021, from Q1 through Q3. This means that if you retain an employee throughout the entire period of eligibility, you can receive a total refund of up to $26,000 per employee kept on your payroll. To find out how much you’re business is eligible for, please visit our calculator here.
Benefits of the Employee Retention Credit?
The ERTC serves as an effective incentive for employers to maintain their existing workforce, as it provides them with a significant refund for doing so. If you are an eligible employer, it’s important to consider this credit and take advantage of the opportunity to recover from the economic impact of the COVID-19 pandemic.
9321
Businesses Funded
401352
Eligible Employees
1.3
Refunds Received
3200
Staff Nationwide