Employee Retention Credit
Internal Revenue Manual Part 3. Submission Processing · 2026-10-03 edition · updated 2026-10-04 · United States
The Employee Retention Credit (ERC) was a fully refundable tax credit claimed against certain employment taxes reported on quarterly and annual tax returns for 2020 and 2021.
The table below explains the ERC and distinguishes the changes made to the credit from 2020 to 2021.
Form
2020
2021
ERC Explained
The amount of the ERC was equal to 50% of the qualified wages that an eligible employer paid to employees beginning March 13, 2020 and ending December 31, 2020.
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