Employment Credits & Incentives

We help employers capture tax credits and incentives for job creation, retention and training.

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Supporting investments in your workforce 

How you invest in your people is among the most important financial decisions you can make.

Budgeting for critical human capital investments is made a little easier with tax credits for employers. Federal, state and local governments offer workforce programs that incentivize workplace diversity and facilitate access to jobs for American workers. Employment-related tax credits and incentives are offered to employers who create jobs, hire individuals from targeted groups, retain employees and provide training opportunities.  

BDO helps companies identify, claim and support employment-related tax credits and incentives. We leverage a technology-enabled approach to efficiently collect the information needed to calculate and claim credit opportunities while maintaining employee privacy. We bring deep knowledge across HR, finance, payroll, and tax to guide you through the entire claims process, from identifying the right workforce investments to overseeing compliance with incentive programs.  

How BDO Can Help

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Offset Workforce Investments 

Secure funding to increase investments in your people while reducing your dollar-for-dollar tax liability. 

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Increase Resilience

Hold on to your talent through tough times with employee retention credits.

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Incentivize Diversity 

Give more opportunities to underemployed groups like veterans or food stamp recipients. 

Tax Credits for Employers

BDO can help you identify opportunities that support continued investment in your people.

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State incentives and income tax credits for new job creation 

Rewards for companies that offer jobs in distressed areas 

Relief for employers whose businesses were negatively affected by COVID-19 to keep employees on their payroll 

See if you qualify with our ERC calculator. 

Relief for employers affected by qualified disasters to keep employees on their payroll 

Negotiated credits and incentives, payroll tax rebates, training grants and more

Employee Retention Credit

The ERC was introduced by the CARES Act in 2020, expanded under the Consolidated Appropriations Act of 2021 (CAA), and extended under the American Rescue Plan Act of 2021 (ARPA). It is designed to encourage employers (including tax-exempt entities) to keep employees on their payroll and continue providing health benefits during the coronavirus pandemic.

Under the CAA and ARPA expansions, the ERC was expected to be available for all of 2021. But the Infrastructure Investment and Jobs Act (IIJA), signed by President Biden in November 2021, ended the ERC retroactively as of September 30, 2021 for most employers. The IRS issued guidance in December 2021 that provides penalty relief for some employers who took advantage of the ERC on fourth quarter 2021 earnings.

The ERC is a refundable payroll tax credit for wages and health plan expenses paid or incurred by an employer whose operations were either fully or partially suspended due to a COVID-19-related governmental order or where the employer experienced a significant reduction in gross receipts. Stay up to date on the latest ERC guidance with our resources below. Follow BDO’s Tax Policy Watch to learn how possible tax law changes may impact you and your business.

The ERC can be claimed retroactivity, and many businesses have yet to claim their benefit.

Article

IRS Announces Relief For Employers Who Took Employee Retention Credit For Fourth Quarter 2021 Wages

December 7, 2021

The IRS on December 6 issued guidance that provides penalty relief for some employers who took advantage of the employee retention credit on fourth quarter 2021 earnings. The ERC was terminated effective Sept. 30, 2021--three months earlier than expected--as part of the recently enacted Infrastructure Investment and Jobs Act.

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Article

Employee Retention Credit to End September 30, 2021 Instead of at Year End

November 10, 2021

The Infrastructure Investment and Jobs Act, which the House of Representatives passed on November 5 and President Biden is expected to sign into law the week of November 15, will retroactively end the employee retention credit on September 30, 2021 for most employers.

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Article

IRS Issues Additional Guidance on the Employee Retention Credit

August 11, 2021

On August 4, 2021, the IRS issued Notice 2021-49, which provides long overdue guidance for employers that have taken or are considering taking the employee retention credit (ERC) as initially made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and modified and extended under the American Rescue Plan Act of 2021 (ARPA).

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Employee Retention Credit Calculator

Many eligible businesses have yet to claim the credit. Use our calculator to find out if you qualify for the ERC and if so, by how much. 

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Do work that matters, where you matter.

At BDO, you can do much more than fulfill your career ambitions — here, you can explore your full potential. That’s because we’re committed to helping our employees achieve on both personal and professional levels.


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