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Employee Retention Credit (CARES Act)

Under the CARES Act, eligible employers able to keep employees on their payroll can claim the Employee Retention Credit:

  • The Employee Retention Credit allow employers take a credit in the amount of 50% of up to $10,000 of an employee’s qualifying wages ($5,000 is the maximum credit amount). This credit then reduces your employer Social Security tax liability.
  • If your credit is more than your SS tax liability, you will receive a refund.
  • Employee Retention Credit is a refundable tax credit equal to 50% of qualifying wages employers pay to their employees after March 12, 2020 and before January 1, 2021.  
  • The maximum credit amount is $5,000 per employee for all calendar quarters. This means the IRS will only take wages up to $10,000 per employee into account.

Employers eligible for the Employee Retention Credit are those who, in any calendar quarter in 2020, have either:

  • Fully or partially suspended operations as a result of orders from a governmental authority due to the coronavirus
  • Experienced a significant decline in gross receipts

Contact TCG to receive a complimentary analysis to determine the amount of tax credits your business may be eligible to receive.

Please click here to complete the form to receive free complimentary analysis.

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