Employee Retention Credit Claims are an important part of the economic puzzle for many businesses. They provide a financial incentive for employers to keep their employees on board during the (sometimes) difficult times associated with the current pandemic. It is a program that was created by the CARES Act to help employers retain staff and avoid layoffs in 2020, and can be claimed through 2021.

Unfortunately, not all businesses are eligible to claim this credit. In order to qualify, employers must have experienced a decline in gross receipts of at least 50% compared to 2019 and been forced to reduce wages or hours due to COVID-19 restrictions. If it's determined that a business meets these criteria, they may be able to receive up to $5,000 per employee over two quarters (April - June & July - September). That could add up quickly if you have multiple employees!

In addition (transition phrase), there are certain conditions which must be met in order for an employer to make Employee Retention Credit Claims. For starters, the employer must use Form 941 Quarterly Tax Returns when filing taxes with IRS; furthermore, any wages paid cannot exceed $10K per quarter/employee and any bonuses/incentives count against this amount. Additionally, no other government relief is allowed while taking advantage of this credit unless specifically authorized by the IRS.

All things considered, this program provides much needed relief for businesses struggling with economic hardship due to COVID-19 restrictions; however, it's important for employers interested in utilizing Employee Retention Credit Claims to fully understand eligibility requirements before submitting claims!