IRS Issues Employee Retention Credit Guidance for Start of 2021

The IRS addressed congressional changes to the employee retention credit for the first two calendar quarters of 2021.

The credit, created in the March 2020 CARES Act, is a perk for businesses keeping employees on their payroll during the Covid-19 pandemic. The credit was extended through June 30, 2021, in a December relief law.

• Under that law, employers can claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages they pay to employees after Dec. 31, 2020, through June 30, 2021, the IRS said (Notice 2021-23).
• Qualified ...