Since the Employee Retention Credit (ERC) was enacted in March 2020, the guidance available for taxpayers has been limited, and for nonprofits, even more so.

The Employee Retention Tax Credit (ERTC) is a refundable tax credit available to employers who retained employees and paid them wages during the COVID-19 pandemic.

Lendio explains the Employee Retention Credit and why, despite the end of the pandemic, small business owners may still retroactively qualify for it.

Businesses can still claim the Employee Retention Credit if they had to temporarily or permanently close operations due to COVID-19.

Image Credit: PeopleImages12 / 123rf. "The Employee Retention Tax Credit has evolved from inception in 2020, Many changes to the ERC program have evolved in 2021, 2022, and now 2023.

A spokesperson for the IRS says some “widely promoted scams” falsely claim workers qualify for the Employee Retention Credit.