A pro-worker, pro-business measure spearheaded by
"Coronavirus is an unprecedented public health and economic crisis requiring an unprecedented response from the federal government," said Murphy. "I'm pleased we were able to get an employee retention tax credit in this package, which hopefully will soon become law. This credit will help employers - especially small businesses - retain and pay their employees rather than lay them off. This measure will prevent layoffs, ensuring Americans affected by this virus will have a job after this crisis is over."
The key provisions of the Murphy-backed ERTC (Section 2301 of the CARES Act) are as follows:
* The credit is equal to 50 percent of qualified wages (including health expenses) paid to an employee after
* The credit is taken against employment taxes, with any excess refunded to the employer.
* For employers with 100 or fewer employees (measured by average employment in 2019), the credit applies if the employer had to fully or partially suspend operations due to an order from a governmental authority, or had a decline in revenue for any calendar quarter in 2020 of 50% compared to the same quarter in 2019.
* For employers with over 100 employees, the same conditions apply but the credit applies only to wages paid to employees who are on payroll but not working.
* The credit covers qualified wages paid after
* The credit applies to tax-exempt organizations, including non-profit organizations.