What Was the Employee Retention Credit?
The Employee Retention Credit (ERC) was a refundable tax credit available to businesses that kept employees on payroll during the COVID-19 pandemic. Eligible employers could recover up to $21,000 per W-2 employee through a retroactive refund on taxes already paid. The ERC was established under the CARES Act and became one of the most impactful relief programs for small businesses during the pandemic.