COVID Employee Retention Tax Credit (CERTC)

2020 and 2021 Payroll tax credit designed to reward employers that retained their employees during disruption due to the COVID-19 pandemic.

The COVID Employee Retention Tax Credit (CERTC) is a 2020 and 2021 payroll tax credit designed to reward employers that retained their employees either

A) During a business disruption (see link below for possible business disruptions)

COVID-19 Partial Suspension PDF

B) Drop in gross receipts due to the COVID-19 pandemic (see here)

This credit is worth up to $5000 per employee for 2020 and up to $7000 per quarter during 2021 for qualified employers.

Important: This is a credit that acts as a refund and puts cash directly back in your business

For employers with no more than 100 average monthly full-time employees in 2019, the 2020 credit is calculated on wages paid to all employees regardless if they were providing services or not. For employers with over 100 average monthly full-time employees in 2019, the 2020 credit is calculated on wages paid to employees for not providing services for the employer. This threshold changes in 2021 to employers with over 500 average monthly 2019 full-time employees. The credit is fully refundable for any amount that exceeds your payroll tax liability.

See If Your Business Qualifies

Important Links

https://www.irs.gov/newsroom/covid-19-related-employee-retention-credits-general-information-faqs

https://www.investopedia.com/what-is-the-employee-retention-credit-and-how-to-get-it-4802575

See If Your Business Is Qualified: