It is a payroll tax credit that was designed to help businesses continue to retain their employees through the pandemic. The credit reimburses businesses for the payroll tax they paid in. ERC is a payroll tax credit that became available with the passing of the CARES Act.
HOW MUCH IS A CLAIM WORTH?
2020: Up to $5,000 per employee PER YEAR.
2021: Up to $7,000 per employee PER QUARTER.