Connect with and learn from others in the QuickBooks Community.
Is the Employee Retention Credit 50% of eligible wages or 50% of employer taxes paid.
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.
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?
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.