The Employee Retention Tax Credit Helps Keep Workers Working

The credit is worth up to $5,000 per paid employee for businesses financially harmed by the coronavirus pandemic that continue to keep employees on the payroll.

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Congress is relying in part on tax relief to help boost the U.S. economy dragged down by the coronavirus pandemic. Take, for example, the employee retention tax credit (ERTC), a federal payroll tax break available to businesses economically hurt by the coronavirus crisis but continue to keep employees on the payroll. It was enacted as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Eligible employers

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Joy Taylor
Editor, The Kiplinger Tax Letter

Joy is an experienced CPA and tax attorney with an L.L.M. in Taxation from New York University School of Law. After many years working for big law and accounting firms, Joy saw the light and now puts her education, legal experience and in-depth knowledge of federal tax law to use writing for Kiplinger. She writes and edits The Kiplinger Tax Letter and contributes federal tax and retirement stories to and Kiplinger’s Retirement Report. Her articles have been picked up by the Washington Post and other media outlets. Joy has also appeared as a tax expert in newspapers, on television and on radio discussing federal tax developments.