Early Termination of Employee Retention Credit

On November 5, 2021, the House of Representatives passed the Infrastructure Investment and Jobs Act (Infrastructure Act) that is now waiting to be signed by President Biden. As a result of the Infrastructure Act, the Employee Retention Credit (ERC) will be terminated early. Previously, the Consolidated Appropriations Act of 2021 (CAA) allowed for the credit to be taken through December 31, 2021. However, with the early termination, any money paid after September 30, 2021 will be ineligible for the credit, except for wages paid by an eligible recovery startup business.

For more information on the Employee Retention Credit view this blog post.

Disclaimer: This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our Firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.