Employee Retention Tax Credit (ERTC)

The Employee Retention Tax Credit, or ERTC, was a federal pandemic-era payroll tax credit for eligible employers that retained employees during certain COVID-19-related periods.

The ERTC, also called the Employee Retention Credit, applied to qualifying wages paid during specific periods established by federal law. Eligibility and calculation rules changed several times, and the program is no longer an ongoing credit for current payroll periods. Employers reviewing a past claim should rely on current IRS guidance and qualified tax advice because filing, documentation, and enforcement rules can be complex.