When properly claimed, the Employee Retention Tax Credit (ERTC) is a refundable tax credit designed for businesses that continued paying employees during the COVID-19 pandemic. The complex credit isn’t available to individuals.

The IRS reports it has received approximately 3.6 million claims over the course of the program.

The credit has precise requirements. Employers can claim the ERTC on an original or amended employment tax return for qualified wages paid between March 13, 2020, and Dec. 31, 2021. However, to be eligible, employers must have:

• Sustained a full or partial suspension of operations due to orders from an appropriate governmental authority limiting commerce, travel or group meetings because of COVID-19 during 2020 or the first three quarters of 2021,
• Experienced a significant decline in gross receipts during 2020 or a decline in gross receipts during the first three quarters of 2021, or
• Qualified as a recovery startup business for the third or fourth quarters of 2021.