- Agency: IRS
- Description: The employee retention credit is designed to encourage businesses to keep employees on their payroll.
- Link(s): https://www.irs.gov/newsroom/new-employee-retention-credit-helps-employers-keep-employees-on-payroll
- Type of assistance: Credit
- Amount: The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
- Restrictions/Eligibility: The credit is available to all employers that have experienced an economic hardship due to COVID-19. This includes tax-exempt organizations. Only two exceptions apply:-Federal, state and local governments and their instrumentalities, and
-Small businesses that receive small business loans under the Paycheck Protection Program. - Due date: Eligible employers can claim this credit for wages paid after March 12, 2020, and before January 1, 2021.
- Time before assistance is approved: Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees’ wages by the amount of the credit.
- Who can receive assistance:
US Citizens and Legal Residents: ITIN and/or Undocumented: Yes Yes