business Congress Ends Employee Retention Credit Early November 10, 2021 The latest infrastructure legislation ends the ERC early. Any wages paid after September 30, 2021 are now ineligible for the credit. Here’s what you should know. Attention employers…the Employee Retention Credit has been terminated early, making any wages paid post September 30, 2021 ineligible for the credit. The House and the Senate have passed the bill, and President Biden is expected to sign it sometime this week. What does this mean for you? We explore the latest legislation below. What is the ERC? The Employee Retention Credit (ERC) was created under the CARES Act to provide financial relief to employers who kept workers on the payroll during the COVID-19 pandemic. Subsequent legislation expanded and extended the ERC through the end of 2021. When is the ERC ending? Originally set to expire at the end of the year, the ERC is now ending September 30, 2021. Why is it ending early? One of the goals of the bipartisan infrastructure bill is to offset the cost of the $1.2 trillion bill. By ending the ERC early, they offset approximately $8 billion. Are there any ways businesses can still benefit from the ERC? Although the ERC program is ending early, employers can still retroactively claim the ERC for qualified wages paid prior to September 30, 2021. So if you are still in the process of filing for the ERC or waiting on a refund of the ERC for credits generated prior to September 30, 2021, don’t worry those credits are still available. Questions on the ERC and early termination? We can help. Reach out to us at any time.
