At the onset of the pandemic, Congress reacted quickly to give struggling employers a financial boost. Lawmakers created a financial lifeline in the form of a tax credit — the employee retention credit (ERC).
The ERC was enacted as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and was available to eligible employers based on wages paid to employees from March 13 through December 2020. The credit was extended through 2021 and enhanced by the Consolidated Appropriations