In early 2020, the CARES Act created a refundable payroll tax credit (the Employee Retention Tax Credit, or the “ERTC”) for eligible payroll costs of certain employers who were negatively impacted by COVID. (See The Cares Act Impact on Employee Benefit Plans; IRS Releases FAQs with Additional Guidance on the CARES Act Employee Retention Tax Credit.) The recent federal COVID relief act, enacted on December 27 (the “Relief Act”), makes a number of modifications to the ERTC, some of which are retroactive, but the most significant of which apply prospectively to the first two quarters of 2021. MORE.
- January 5, 2021
