December 6, 2021
IRS provides guidance for employers on the retroactive termination of the ERC
The IRS has issued guidance (Notice 2021-65) for employers on the retroactive termination of the Employee Retention Credit (ERC). Under the recently enacted Infrastructure Investment and Jobs Act, the ERC applies only to wages paid before October 1, 2021, unless the employer is a recovery startup business. The new guidance applies to employers that paid wages after September 30, 2021, and received an advance payment of the ERC for those wages or reduced employment tax deposits in anticipation of receiving the ERC for Q4 2021. A Tax Alert is forthcoming.