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Frequently Asked Questions

Who can claim the employee retention credit?

There is no employee retention credit application. However, employers can claim the credit on their federal employment tax returns. This usually means claiming the credits on Form 941. This is the Employer’s Quarterly Federal Tax Return form. Employers can amend these forms if they find out later that they qualify for the tax credit.

Do you qualify for the employee retention credit?

Wages/compensation, in general, that are subject to FICA taxes, as well as qualified health expenses qualify when calculating the employee retention credit. These must have been paid after March 12, 2020 and qualify for the credit if paid through June 30, 2021.

What is the nonrefundable portion of employee retention credit?

The ERC is a tax credit against the employer portion of SS taxes. The non-refundable portion of the ERC matches your employer SS taxes. It is called non-refundable b/c it cannot exceed the amount that you were obligated to pay. The non-refundable portion is treated as an offset against your liability.

Are you eligible for the employee retention tax credit?

The credit is available to all eligible employers of any size that paid qualified wages to their employees, however different rules apply to employers with under 100 employees and under 500 employees for certain portions of 2020 and 2021. Who is eligible for the Employee Retention Credit?


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