Tax Alert: CARES Act Employee Retention Credit Terminated

The employee retention credit, originally enacted in the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and later updated by the American Rescue Plan Act of 2021, has been terminated retroactively to the beginning of the 4^th quarter of 2021.

The Infrastructure Bill known as the Infrastructure Investment and Jobs Act, signed into law earlier this week, holds that wages paid after September 30, 2021 are ineligible for the credit, with exceptions for certain eligible recovery startup businesses only.

As always, we at First Advantage will continue to monitor all future legislative action, including the upcoming reconciliation bill, for any and all tax credit and incentive implications. Please ensure you are subscribed to our Tax Alerts to stay informed! If you have any questions, please contact your First Advantage Tax Consultant or your legal counsel.