Employee Retention Tax Credit February 1, 2023 The Employee Retention Credit was a beacon of light for failing businesses during the COVID-19 pandemic. Introduced in March 2020, it was developed to encourage employers to keep their workers during the pandemic despite the business closure. The Employee Retention Credit is 50% and 70% of qualified employee wages paid in a calendar quarter in 2020 and 2021 respectively. Though it has since expired, employers still have time to apply if their business is eligible. Employers can claim this credit by simply filling out Form 941-X when filing for their federal tax returns.