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Understanding the Employee Retention Credit

The Employee Retention Credit (ERC) is a valuable tax incentive designed to encourage businesses to keep employees on their payroll during challenging economic times. Originally introduced as part of the CARES Act in March 2020, the ERC provides a refundable tax credit to employers who retain their staff despite significant disruptions to their operations. The credit is intended to alleviate financial burdens and support businesses in maintaining their workforce.

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