The COVID-19 stimulus package signed into law on December 27th contains significant enhancements to the employee retention tax credit (“ERC”) enacted under the CARES Act. The ERC is a refundable payroll tax credit that was only available to taxpayers who EITHER 1) had their business fully or partially suspended during at least one quarter in 2020, or 2) had a large drop in gross receipts for quarters in 2020 relative to the same quarters in 2019.
Below breaks down the changes from the original law to the enhanced Employee Retention Tax Credit.
ERC Changes