Employee Retention Credit Savings in 2023

When the Employee Retention Credit was introduced, it was meant to be an incentive for businesses during the pandemic. The pandemic made it challenging for businesses to keep employees paid well or even on the payroll at all. The Employee Retention Credit was a tax credit which could save thousands per employee per year. 

For many businesses, this was a great opportunity. They took advantage of the credit, maybe kept a few extra employees paid, and all was good. Although many businesses never heard of the credit, and many more never took advantage. The fortunate thing about the credit is that businesses can still refile to take advantage even today. While the program itself may have ended in 2021, the money is still ripe for the taking.

So what can employers expect to make per employee? Well it all depends, does the business have under 100 or 500 employees? Did the business suffer under COVID, did it qualify as a Recovery Startup Business? These are all factors that affect the eligibility of the credit and the amount it will pay out. At best, employers can expect $26,000 per employee over 2020 and 2021. At worst, employers will only get a few hundred or few thousand for a select few employees. Regardless, the opportunity is limited, and businesses need to take advantage now.

What Is Employee Retention Credit?