Is The Employee Retention Credit Taxable Income?

Small businesses have received over $1 billion in credits from the Employee Retention Credit program in 2021, after more than 30,000 companies participated. Providing a substantial credit of 50% up to $10,000 per employee (2020) or 70% up to $10,000 per employee per quarter (2021), this could reach a maximum of $28,000 for each employee by the end of the year. This leaves many with one main question: Is the employee retention credit taxable income? We’ll now provide you with all the answers you need to know about your income tax and the Employee Retention Credit program.