The Employee Retention Credit has been extended. To encourage businesses to maintain their workforces, the CARES Act created the Employee Retention Credit, a refundable credit against payroll tax for employers meeting certain requirements. The credit equaled 50% of up to $10,000 in compensation (including health care benefits) paid to an eligible employee from March 13, 2020, through Dec. 31, 2020. The new Consolidated Appropriations Act (CAA) extends the credit for eligible employers that continue to pay wages during COVID-19 closures or reduced revenue through June 30, 2021. Notably, as of Jan. 1, 2021, the CAA hikes the credit from 50% of qualified wages to 70%. Call or visit our website for more information! www.mjscpa.com/
