New Employer Tax Credits: The Employee Retention Credit
The IRS has issued Publication 5419 to assist employers with the application of the employee retention credit. The Employee Retention Credit is designed to encourage employers to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in qualified wages paid to an employee by an eligible employer experiencing economic hardship related to COVID-19. This credit is for wages paid from 3/13/2020 through 12/31/2020.
Form 941, Employer’s Quarterly Federal Tax Return, will be revised for the 2020 quarterly filing.