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Level 1

Employee Retention Credit

Is the Employee Retention Credit 50% of eligible wages or 50% of employer taxes paid.

3 Comments 3
Community Champion

Employee Retention Credit


50% of eligible wages against employer social security with excess being paid out as an advance or allowance to reduce deposit of FWT, and both employer and employee FICA.

Level 1

Employee Retention Credit

Not sure what your answer means....  Is the credit for 50% of wages or 50% of withholding taxes paid.  For example say I had 20,000 in eligible wages and had say $3,000 in total deposit withholdings.  My credit would be 10,000 correct?

QuickBooks Team

Employee Retention Credit

Hi there, @Sam1011.


Allow me to share details about Employee Retention Credit. The Employee Retention credit is for 50% of the employee's wages, not their taxes paid. 


For more information about the Employer taxes, check out these articles:


Also, here's an article that'll help ensure your compliance with federal tax regulations: Internal Revenue Service Payroll Tax Compliance.


Fill me in if you have other payroll related questions. I'd be glad to help.

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