The Employee Retention Credit (ERC) enacted in 2020 to help businesses weather the economic fallout of the COVID-19 pandemic is no longer available for most businesses during the fourth quarter of 2021. Employers who already received advance payments of the ERC for Q4 2021, or who reduced payroll taxes for the same period, have remedies available to avoid penalties.
Background on the Employee Retention Credit Being Repealed
The ERC was repealed for Q4 by a provision in the recently enacted $1.2 Trillion Infrastructure Investment and Jobs Act. Since Congress acted in March to extend the ERC through Q4, it’s unusual that the credit was repealed only six months later.… Read More