Grab Unexpected Tax Savings Employee Retention Credit Consult

Calculating the Credit

The ERC amount varies based on the year and the number of employees. In 2020, eligible businesses could claim a credit of up to 50% of qualified wages paid, with a maximum of $5,000 per employee for the year. In 2021, the credit increased to 70% of qualified wages, with a maximum of $7,000 per employee per quarter, allowing businesses to claim up to $28,000 per employee annually². This substantial increase underscores the potential financial relief available through strategic use of the ERC.