IRS Issues Updated Guidance on Employee Retention Credit

Posted by Neely Munnerlyn

    

The IRS has expanded its informal FAQ guidance on the employee retention credit (the “ERC”) which was enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The ERC is a refundable payroll tax credit for employers equal to 50% of qualified wages (including allocable qualified health plan expenses) that eligible employers pay their employees after March 12, 2020 and before January 1, 2021. The maximum amount of qualified wages that may be taken into account with respect to each employee is $10,000 (for a maximum credit of $5,000 per employee).