The CARES Act Employee Retention Credit (ERC) is a payroll tax refund equal to 50 percent of “Qualified Wages” for all employers who qualify for this refund. This Employee Retention Credit (ERC) applies to qualified wages paid after March 12, 2020, and before January 1, 2021. The employer receives up to a $5,000 refund for the first $10,000 in wages per employee.
If qualified, the employer will continue to receive up to 70% of all qualified wages per employee for quarter 1, 2021 plus 70% of all qualified wages per employee for quarter 2, 2021 up to $7,000 of qualified wages per quarter. The maximum refund any employer can receive is $33,000 per employee for all 2020 and 2021 periods once they are properly qualified.