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August 4, 2021

IRS issues guidance for employers claiming employee retention credit for Q3 and Q4 2021

The IRS has issued guidance (Notice 2021-49) on the employee retention credit (ERC) under new IRC Section 3134, which was added under the American Rescue Plan Act of 2021 and applies to wages paid in the second half of 2021 (July 1 — December 31, 2021). The new notice amplifies Notices 2021-20 and 2021-23, which provided guidance on the ERC under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (see Tax Alert 2021-0724). A Tax Alert is forthcoming.