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Employee Retention Tax Credits for Businesses Impacted by Coronavirus
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) creates an employee retention tax credit, which is designed to encourage eligible employers to keep employees on their payroll, despite experiencing economic hardship related to COVID-19.
The employee retention credit is a fully refundable tax credit equal to 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. This tax credit applies to qualified wages paid after March 12, 2020, and before Jan. 1, 2021. The maximum credit for qualified wages paid to any employee is $5,000.
Please contact a member of your Seubert Service Team in you have any questions or concerns about the information presented above.