Employee Retention Credit (ERC)
The Employee Retention Credit (ERC) is a new tax credit created under the CARES Act. Business owners may not realize that there is potential tax credit for employers who were impacted by COVID-19. This refundable tax credit is a relief measure for businesses that encourages them to keep employees on their payroll. The ERC legislation was expanded under the Consolidated Appropriations Act which took effect on January 1, 2021. As a result of this expansion, all employers who took PPP loans could be eligible for the ERC for 2020 and 2021. Because the ERC is new and the legislation is changing, Leyton dedicates a staff of tax professionals to make sure you claim is compliant with all new IRS guidance.