The IRS issued guidance for employers claiming the Employee Retention Credit for the first and second quarters of 2021.
Background: Eligible employers can claim a refundable tax credit against the employer share of Social Security tax equal to 70 percent of the qualified wages they pay to employees between Dec. 31, 2020, and June 30, 2021.
Guidance: Notice 2021-23 explains changes to the credit for the first two calendar quarters of 2021, including the maximum credit amount, increase in eligibility, and other modifications.