Reminder:

For 2020 and 2021, CRN 296 is being used to identify Employee Retention Credit amount. This 2020 CRN applies to MFTs 01, 11, 14 and 09.

Employers could take advantage of this credit in 2020 and 2021 by following the steps below:

Retaining (i.e., not paying) the federal income tax withholding, employee’s share of social security and Medicare taxes and/or the employer’s share of social security and Medicare taxes for all employees up to the amount of the eligible Employee Retention Credit, taking into account any reduction for deposits taken in relation to the Sick Leave and/or Family Leave credits, and

If deposits were reduced to zeroes as a result of (a) above and did not cover the full credit amount, the taxpayer could have requested an advanced payment(s) of the Employee Retention Credit (excluding any amounts retained by the reduction of federal tax deposits or payments outlined in (a) above) by submitting Form 7200 Advance Payment of Employer Tax Credits Due to COVID-19.