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The Employee Retention Credit (ERC) was designed to help businesses weather the economic impact of COVID-19
According to irs
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But, because of the credit, payroll tax expense is only 20,000 And the deductible wages (after the M-1) is 190,000
1, 2021
461-1(a)(2)(i) provides that an expense is deductible for a tax year if three tests are met